Oregon Revised Statutes

Or. Rev. Stat. § 238.095 (2026)

Termination of membership

✓ current as of May 2026

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238.095 Termination of membership. (1) An employee shall cease to be a member of the Public Employees Retirement System if the employee withdraws the member account, if any, of the member in the manner provided by ORS 238.265.

(2) Except as provided in subsection (3) of this section, an inactive member ceases to be a member of the system if the member is not vested and is inactive for a period of five consecutive years.

(3) A school district employee does not cease to be a member of the system under subsection (2) of this section if:

(a) After completing a school year, the member is inactive for the next following five school years; and

(b) The member either is reemployed by a school district in a qualifying position at the beginning of the sixth school year, or reaches earliest service retirement age before the beginning of the sixth school year.

(4) Interest shall not accrue on the amount in the member account of the former member from the date that membership is terminated under subsection (2) of this section. Upon request by the former member, the Public Employees Retirement Board shall pay the amount in a member account to a former member upon the termination of the membership of the former member under subsection (2) of this section if the former member is separated from all service with all participating public employers and all employers who are treated as part of a participating public employer’s controlled group under the federal laws and rules governing the status of the system and the Public Employees Retirement Fund as a qualified governmental retirement plan and trust. The board may deduct, from the amount paid to a former member under this subsection, all reasonable costs incurred by the system in locating the member.

(5) If the membership of a person in the system is terminated under subsection (2) of this section, and the person subsequently becomes an active member of the system, any amounts that were not paid to the person under subsection (4) of this section:

(a) Shall be credited with net earnings and losses. Under this subsection, crediting commences upon the person becoming an active member of the system and continues as long as the person remains an active member.

(b) May be withdrawn by a member who is:

(A) Separated from all service with all participating public employers and all employers who are treated as part of a participating public employer’s controlled group under the federal laws and rules governing the status of the system and the Public Employees Retirement Fund as a qualified governmental retirement plan and trust;

(B) Receiving a disability retirement allowance under ORS 238.320; or

(C) Receiving a service retirement allowance under ORS 238.280 or 238.300. [Formerly 237.109; 1999 c.317 §7; 2001 c.945 §36; 2003 c.67 §20; 2003 c.105 §1; 2005 c.152 §4; 2007 c.776 §5; 2023 c.404 §6]

238.100 [Repealed by 1965 c.607 §9]

RETIREMENT CREDIT

(Restoration of Forfeited Credit)

Notes of Decisions

Cited in 5 cases, 2009–2017 · leading case: Moro v. State of Oregon

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Moro v. State of Oregon, 351 P.3d 1 (Or. 2015). · cites it 2× “Thus, for example, ORS 238.095(2) pro- vides, generally speaking, that “an inactive member ceases to be a member of the system if the member is not vested and is inactive for a period of five consecutive years.”

Lenon v. Pub. Employees Ret. Bd., 206 P.3d 1165 (Or. Ct. App. 2009). · cites it 2× “015(1); ORS 238.095. An "active" member is one who has completed six months of service for the participating employer.”

Aronson v. Pub. Employees Ret. Bd., 236 P.3d 731 (Or. Ct. App. 2010). · cites it 4× “005(19) (2009) — and those amendments have, in turn, altered the operation of ORS 238.095 (2009), the present analog of former ORS 237.”

Eugene Water & Elec. Bd. v. Pub. Emps. Ret. Bd., 410 P.3d 1026 (Or. Ct. App. 2017). “109(2) (1973), renumbered as ORS 238.095 (1995), 4 to determine whether PERB erred when it recalculated the petitioner's PERS benefits by not crediting the years the petitioner was working less than 600 hours a year.”

Moro v. State of Oregon (Or. 2015). “Thus, for example, ORS 238.095(2) pro- vides, generally speaking, that “an inactive member ceases to be a member of the system if the member is not vested and is inactive for a period of five consecutive years.”

— Or. Rev. Stat. § 238.095(2) — 3 cases

Moro v. State of Oregon, 351 P.3d 1 (Or. 2015). “Thus, for example, ORS 238.095(2) pro- vides, generally speaking, that “an inactive member ceases to be a member of the system if the member is not vested and is inactive for a period of five consecutive years.”

Aronson v. Pub. Employees Ret. Bd., 236 P.3d 731 (Or. Ct. App. 2010). “005(19) (2009) — and those amendments have, in turn, altered the operation of ORS 238.095 (2009), the present analog of former ORS 237.”

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