ORS 238.730
Unfunded Actuarial Liability Resolution Program

(1)

The Public Employees Retirement Board shall establish an Unfunded Actuarial Liability Resolution Program. Under the program, the board shall provide technical expertise to manage projected employer contribution rate changes. Funding plans developed under the program must be based on actuarial reports prepared under ORS 238.605 (Actuarial report on system).

(2)

A participating public employer shall participate in the program.

(3)

The board may use moneys in the Employer Incentive Fund established in section 1, chapter 105, Oregon Laws 2018, for reasonable administrative costs incurred under this section. [2018 c.105 §26; 2019 c.355 §54; 2021 c.135 §7]
Note: The amendments to 238.730 (Unfunded Actuarial Liability Resolution Program) by section 55, chapter 355, Oregon Laws 2019, become operative July 1, 2042. See section 64, chapter 355, Oregon Laws 2019. The text that is operative on and after July 1, 2042, including amendments by section 8, chapter 135, Oregon Laws 2021, is set forth for the user’s convenience.
238.730 (Unfunded Actuarial Liability Resolution Program). (1) The Public Employees Retirement Board shall establish an Unfunded Actuarial Liability Resolution Program. Under the program, the board shall provide technical expertise to manage projected employer contribution rate changes. Funding plans developed under the program must be based on actuarial reports prepared under ORS 238.605 (Actuarial report on system).

(2)

A participating public employer shall participate in the program.
Note: Sections 1 to 3, chapter 105, Oregon Laws 2018, provide:
Sec. 1. (1) The Employer Incentive Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned by the Employer Incentive Fund shall be credited to the fund. Interest earned by the fund may be used under section 2, chapter 105, Oregon Laws 2018, to match lump sum payments made under ORS 238.229 (Effect of lump sum payment to side account on contributions of pooled employer).

(2)

Moneys in the fund are continuously appropriated to the Public Employees Retirement Board for the purposes described in sections 2 and 26 [238.730 (Unfunded Actuarial Liability Resolution Program)], chapter 105, Oregon Laws 2018.

(3)

Moneys in the fund shall be invested in the Oregon Short Term Fund established under ORS 293.728 (Oregon Short Term Fund). [2018 c.105 §1; 2019 c.355 §46]
Sec. 2. (1)(a) The Public Employees Retirement Board shall establish a process for distributing the moneys in the Employer Incentive Fund established under section 1, chapter 105, Oregon Laws 2018.

(b)

The process must allow a participating public employer to apply to reserve matching amounts in the Employer Incentive Fund by committing to make a qualifying lump sum payment of at least $25,000 to an account established under ORS 238.229 (Effect of lump sum payment to side account on contributions of pooled employer).

(2)

The board shall adopt rules establishing:

(a)

The percentage of a lump sum payment that may be matched by distributions from the fund, not to exceed 25 percent of a qualifying lump sum payment.

(b)

The maximum matching amount that may be reserved by a participating public employer, not to exceed the greater of:

(A)

Five percent of the unfunded actuarial liability attributable to the employer, as determined in the most recent report prepared under ORS 238.605 (Actuarial report on system); or

(B)

$300,000.

(c)

The qualifications for lump sum payments that may be matched under this section, including a requirement that a qualifying lump sum payment may not be a payment from moneys borrowed by the employer.

(d)

A requirement that the participating public employer participate in the Unfunded Actuarial Liability Resolution Program to develop a plan under ORS 238.730 (Unfunded Actuarial Liability Resolution Program).

(3)

Intentionally left blank —Ed.

(a)

For 90 days after the board begins accepting applications under subsection (1) of this section, a participating public employer may apply to reserve matching amounts from the Employer Incentive Fund under subsection (1) of this section only if the unfunded actuarial liability attributable to the employer, as determined in the most recent report prepared under ORS 238.605 (Actuarial report on system), is more than 200 percent of the employer’s payroll for members of the Public Employees Retirement System.

(b)

After the 90-day period described in paragraph (a) of this subsection, any participating public employer may apply to reserve matching funds from the Employer Incentive Fund under subsection (1) of this section.

(4)

Intentionally left blank —Ed.

(a)

The board shall approve applications that meet the qualifications established under subsection (2) of this section in the order in which the applications are submitted. The board shall continue approving applications as long as adequate moneys in the Employer Incentive Fund are available.

(b)

After all of the moneys available in the Employer Incentive Fund are reserved for matching under paragraph (a) of this subsection, the board may establish a waiting list for the remaining timely submitted applications and, if sufficient moneys in the Employer Incentive Fund become available, shall approve, in the order in which the applications were submitted, applications that meet the qualifications established under subsection (2) of this section.

(5)

The board shall transfer matching amounts approved under subsection (4) of this section from the Employer Incentive Fund to the approved employers’ accounts established under ORS 238.229 (Effect of lump sum payment to side account on contributions of pooled employer).

(6)

The board may transfer moneys from the Employer Incentive Fund to the Public Employees Retirement Fund established under ORS 238.660 (Fund generally) for crediting to the reserves for pension accounts and annuities as provided in ORS 238.670 (Reserve accounts in fund) (2).

(7)

The board may use moneys in the Employer Incentive Fund for reasonable administrative costs incurred under this section. [2018 c.105 §2; 2019 c.355 §47; 2021 c.135 §9]
Sec. 3. (1) Section 2, chapter 105, Oregon Laws 2018, as amended by section 47, chapter 355, Oregon Laws 2019, is repealed July 1, 2042.

(2)

Intentionally left blank —Ed.

(a)

The Employer Incentive Fund established under section 1, chapter 105, Oregon Laws 2018, is abolished on July 1, 2042.

(b)

The unexpended moneys remaining in the Employer Incentive Fund on July 1, 2042, shall be transferred to the General Fund. [2018 c.105 §3; 2019 c.355 §48; 2020 s.s.2 c.10 §16]
Note: Section 3, chapter 105, Oregon Laws 2018, as set forth includes amendments by section 16, chapter 10, Oregon Laws 2020 (second special session), and does not reflect the Governor’s intended veto of section 16, chapter 10, Oregon Laws 2020 (second special session). This intended veto cites the single-item veto exception found in Article V, section 15a, of the Oregon Constitution, allowed for appropriation bills. As of this printing, Oregon appellate courts have not interpreted the term “appropriation bills” for purposes of Article V, section 15a.
Note: Section 24, chapter 105, Oregon Laws 2018, and section 52, chapter 355, Oregon Laws 2019, provide:
Sec. 24. (1) The School Districts Unfunded Liability Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned by the School Districts Unfunded Liability Fund shall be credited to the fund. The fund consists of moneys transferred, allocated or appropriated to the fund.

(2)

Moneys in the fund are continuously appropriated to the Public Employees Retirement Board for the purpose of establishing and funding a pooled account to be applied against the liabilities of participating public employers, as defined in ORS 238.005 (Definitions), that are school districts.

(3)

Moneys in the fund shall be invested in the Oregon Short Term Fund established under ORS 293.728 (Oregon Short Term Fund).

(4)

The board shall establish an account in the Public Employees Retirement Fund for the moneys in the School Districts Unfunded Liability Fund.

(5)

The board shall adopt rules providing for:

(a)

Proportional distribution to school districts of the moneys in the account established under subsection (4) of this section;

(b)

Amortization of the moneys distributed; and

(c)

Administration of the account established under subsection (4) of this section in the same manner as accounts established under ORS 238.229 (Effect of lump sum payment to side account on contributions of pooled employer) (2).

(6)

No later than February 1 of each odd-numbered year, the board shall report to the Oregon Department of Administrative Services and the Legislative Fiscal Officer an estimate of how moneys will be distributed under this section in the following biennium. [2018 c.105 §24; 2019 c.355 §51; 2020 s.s.2 c.10 §19]
Sec. 52. The School Districts Unfunded Liability Fund established under section 24, chapter 105, Oregon Laws 2018, is abolished on July 1, 2042. The unexpended moneys remaining in the fund on July 1, 2042, shall be transferred to the General Fund. [2019 c.355 §52]
Note: Sections 27, 28 and 29, chapter 105, Oregon Laws 2018, provide:
Sec. 27. Section 28 of this 2018 Act is added to and made a part of ORS chapter 238. [2018 c.105 §27]
Sec. 28. During each regular session of the Legislative Assembly, the Public Employees Retirement Board shall report to the Joint Committee on Ways and Means on the status of the Employer Incentive Fund established in section 1 of this 2018 Act, the School Districts Unfunded Liability Fund established in section 24 of this 2018 Act and the Unfunded Actuarial Liability Resolution Program established under section 26 of this 2018 Act [238.730 (Unfunded Actuarial Liability Resolution Program)]. [2018 c.105 §28]
Sec. 29. Section 28, chapter 105, Oregon Laws 2018, is repealed on January 2, 2042. [2018 c.105 §29; 2019 c.355 §53]

Source: Section 238.730 — Unfunded Actuarial Liability Resolution Program, https://www.­oregonlegislature.­gov/bills_laws/ors/ors238.­html.

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
Short title
Green check means up to date. Up to date

Current through early 2024

§ 238.730’s source at oregon​.gov