Oregon Revised Statutes

Or. Rev. Stat. § 238.255 (2026)

Credits to regular accounts when earnings less than assumed interest rate

✓ current as of May 2026
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      238.255 Credits to regular accounts when earnings less than assumed interest rate. (1) The regular account for an active or inactive member of the Public Employees Retirement System shall be examined each year. If the regular account is credited with earnings for the previous year in an amount less than the earnings that would have been credited pursuant to the assumed interest rate for that year determined by the Public Employees Retirement Board, the amount of the difference shall be credited to the regular account and charged to a reserve account in the Public Employees Retirement Fund established for the purpose. A reserve account so established may not be maintained on a deficit basis for a period of more than five years. Earnings in excess of the assumed interest rate for years following the year for which a charge is made to the reserve account shall first be applied to reduce or eliminate the amount of a deficit.

      (2) The regular account for an active or inactive member who established membership in the system before January 1, 1996, as described in ORS 238.430, may not be credited with earnings in excess of the assumed interest rate until:

      (a) The reserve account established under subsection (1) of this section no longer has a deficit;

      (b) The reserve account established under subsection (1) of this section is fully funded with amounts determined by the board, after consultation with the actuary employed by the board, to be necessary to ensure a zero balance in the account when all members who established membership in the system before January 1, 1996, as described in ORS 238.430, have retired; and

      (c) The reserve account established under subsection (1) of this section has been fully funded as described in paragraph (b) of this subsection in each of the three immediately preceding calendar years. [Formerly 237.277; 2001 c.945 §4; 2003 c.3 §1; 2003 c.67 §5; 2003 c.625 §10; 2011 c.722 §13]

 

      238.258 [2003 c.67 §8; 2003 c.625 §12; repealed by 2011 c.722 §15]

Notes of Decisions
Cited in 4 cases, 1996–2011 · leading case: Strunk v. Pub. Employees Ret. Bd., 108 P.3d 1058 (Or. 2005).
Strunk v. Pub. Employees Ret. Bd., 108 P.3d 1058 (Or. 2005). · cites it 42× “277 (1975) (now ORS 238.255). [41] Petitioners identify the following statutory provisions as relevant to our consideration: "[PERB] shall provide for a regular account for each active and inactive member of the system.”
Arken v. City of Portland, 263 P.3d 975 (Or. 2011). · cites it 5× “PERB sets employer contribution rates, adopts actuarial equivalency factors and assumed earnings rates, establishes reserve accounts, and allocates annual earnings to accounts and reserves.”
Robertson v. Kulongoski, 359 F. Supp. 2d 1094 (D. Or. 2004). · cites it 14× “Second Claim for Relief: HB 2003, Sections 5 & 6; Elimination of Guaranteed Rate Plaintiffs allege that prior to- the enactment of sections 5 and 6 of HB 2003, ORS § 238.255 guaranteed earnings on their accounts of at least 8%.”
Oregon State Police Officers' Ass'n v. State, 918 P.2d 765 (Or. 1996). · cites it 8× “" (Recodified as ORS 238.255 in 1995.) The effect of ORS 237.”
— Or. Rev. Stat. § 238.255(1) — 2 cases
Strunk v. Pub. Employees Ret. Bd., 108 P.3d 1058 (Or. 2005). “277 (1975) (now ORS 238.255). [41] Petitioners identify the following statutory provisions as relevant to our consideration: "[PERB] shall provide for a regular account for each active and inactive member of the system.”
Robertson v. Kulongoski, 359 F. Supp. 2d 1094 (D. Or. 2004). “Second Claim for Relief: HB 2003, Sections 5 & 6; Elimination of Guaranteed Rate Plaintiffs allege that prior to- the enactment of sections 5 and 6 of HB 2003, ORS § 238.255 guaranteed earnings on their accounts of at least 8%.”
— Or. Rev. Stat. § 238.255(1)(2001) — 1 case
Robertson v. Kulongoski, 359 F. Supp. 2d 1094 (D. Or. 2004). “Second Claim for Relief: HB 2003, Sections 5 & 6; Elimination of Guaranteed Rate Plaintiffs allege that prior to- the enactment of sections 5 and 6 of HB 2003, ORS § 238.255 guaranteed earnings on their accounts of at least 8%.”
— Or. Rev. Stat. § 238.255(3) — 1 case
Strunk v. Pub. Employees Ret. Bd., 108 P.3d 1058 (Or. 2005). “277 (1975) (now ORS 238.255). [41] Petitioners identify the following statutory provisions as relevant to our consideration: "[PERB] shall provide for a regular account for each active and inactive member of the system.”
— Or. Rev. Stat. § 238.255(5) — 1 case
Strunk v. Pub. Employees Ret. Bd., 108 P.3d 1058 (Or. 2005). “277 (1975) (now ORS 238.255). [41] Petitioners identify the following statutory provisions as relevant to our consideration: "[PERB] shall provide for a regular account for each active and inactive member of the system.”
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