Oregon Revised Statutes

Or. Rev. Stat. § 238.300 (2026)

Service retirement allowance

✓ current as of May 2026
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      238.300 Service retirement allowance. Upon retiring from service at normal retirement age or thereafter, a member of the Public Employees Retirement System shall receive a service retirement allowance which shall consist of the following annuity and pensions:

      (1) A refund annuity which shall be the actuarial equivalent of accumulated contributions, if any, by the member under this chapter and interest thereon credited at the time of retirement, which annuity shall provide an allowance payable during the life of the member and at death a lump sum equal in amount to the difference between accumulated contributions at the time of retirement and the sum of the annuity payments actually made to the member during life shall be paid to such person, if any, as the member nominates by written designation duly acknowledged and filed with the board or shall otherwise be paid according to the provisions of this chapter for disposal of an amount credited to the member account of a member at the time of death in the event the member designates no beneficiary to receive the amount or no such beneficiary is able to receive the amount. If death of the member occurs before the first payment is due, the member account of the member shall be treated as though death had occurred before retirement.

      (2)(a) A life pension (nonrefund) for current service provided by the contributions of employers and, for pension benefits that accrue on or after July 1, 2020, amounts in the employee pension stability account established for the member under ORS 238A.353, which pension, subject to paragraph (b) of this subsection, shall be an amount which, when added to the sum of the annuity, if any, under subsection (1) of this section and the annuity, if any, provided on the same basis and payable from the Variable Annuity Account, both annuities considered on a refund basis, results in a total of:

      (A) For service as a police officer or firefighter, two percent of final average salary multiplied by the number of years of membership in the system as a police officer or firefighter before the effective date of retirement.

      (B) For service as other than a police officer or firefighter, including service as a member of the Legislative Assembly, 1.67 percent of final average salary multiplied by the number of years of membership in the system as other than a police officer or firefighter before the effective date of retirement.

      (b) A pension under this subsection shall be at least:

      (A) For a member who first establishes membership in the system before July 1, 2003, the actuarial equivalent of the annuity provided by the accumulated contributions of the member. A person establishes membership in the system before July 1, 2003, for the purposes of this subparagraph if:

      (i) The person is a member of the system, or a judge member of the system, on the day immediately before July 1, 2003; or

      (ii) The person performed any period of service for a participating public employer before July 1, 2003, that is credited to the six-month period of employment required of an employee under ORS 238.015 before an employee may become a member of the system.

      (B) For a member who made contributions before August 21, 1981, the equivalent of a pension computed pursuant to this subsection as it existed immediately before that date.

      (c) As used in this subsection, “number of years of membership” means the number of full years of creditable service plus any remaining fraction of a year of creditable service. Except as otherwise provided in this paragraph, in determining a remaining fraction a full month shall be considered as one-twelfth of a year and a major fraction of a month shall be considered as a full month. Membership of a school district employee, an employee of an institution of higher education engaged in teaching or other school activity or an employee of the Department of Human Services, the Oregon Youth Authority, the Department of Corrections or the State Board of Education engaged in teaching or other school activity at an institution supervised by the authority, board or department, for all portions of a school year in a calendar year in which the district school, institution of higher education or school activity at an institution so supervised in which the member is employed is normally in session shall be considered as a full one-half year of membership. The number of years of membership of a member who received a refund of contributions as provided in ORS 237.976 (2) is limited to the number of years after the day before the date on which the refund was received. The number of years of membership of a member who is separated, for any reason other than death or disability, from all service entitling the member to membership in the system, who withdraws the amount credited to the member account of the member in the fund during absence from such service and who thereafter reenters the service of an employer participating in the system but does not repay the amount so withdrawn as provided in this chapter, is limited to the number of years after the day before the date of so reentering.

      (3) An additional life pension (nonrefund) for prior service credit, including military service, credited to the member at the time of first becoming a member of the system, as elsewhere provided in this chapter, which pension shall be provided by the contributions of the employer. [Formerly 237.147; 1997 c.249 §67; 2001 c.900 §49; 2001 c.945 §50; 2003 c.67 §4; 2003 c.625 §22; 2003 c.733 §46e; 2011 c.637 §73; 2019 c.355 §13]

 

      Note: Section 46f, chapter 733, Oregon Laws 2003, provides:

      Sec. 46f. The amendments to ORS 238.300 by section 46e of this 2003 Act apply to periods of service as a member of the Legislative Assembly served by reason of appointment or election to the Legislative Assembly on or after the effective date of this 2003 Act [August 29, 2003], including periods of service as a member of the Legislative Assembly served by reason of reelection to the Legislative Assembly after the effective date of this 2003 Act. [2003 c.733 §46f]

Notes of Decisions
Cited in 15 cases (3 in the last 5 years), 1996–2024 · 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 70× “* * * Under ORS 238.300 (2001), however, petitioners were promised calculation of their benefits under the formula which would produce the highest value.”
Moro v. State of Oregon, 351 P.3d 1 (Or. 2015). · cites it 12× “There are three broad categories of PERS members: Tier One members were hired before January 1, 1996; Tier Two members were hired between January 1, 1996, and August 28, 2003; and Oregon Public Service Retirement Plan (OPSRP) members were hired after August 28, 2003.”
City of Eugene v. State, 117 P.3d 1001 (Or. 2005). · cites it 10× “260(12) [10] and ORS 238.300(2)(a) by requiring employers to match all earnings allocated to members' variable annuity accounts.”
Arken v. City of Portland, 263 P.3d 975 (Or. 2011). · cites it 3× “ORS 238.300. At retirement, a PERS member is entitled to receive a service retirement allowance based on the formula that produces the highest pension amount.”
City of Eugene v. STATE, PERB, 137 P.3d 1288 (Or. 2006). · cites it 2× “260(12) and ORS 238.300(2)(a) require that the PERB initially calculate the Variable Annuity Account earnings on the same basis as the regular annuity account earnings, and both the regular account and Variable Account annuities must then be compiled together to determine the…”
Cnty. of Linn v. State of Oregon, 510 P.3d 962 (Or. Ct. App. 2022). · cites it 4× “In Strunk, the Supreme Court considered whether 2003 legislation 314 County of Linn v.”
Robertson v. Kulongoski, 359 F. Supp. 2d 1094 (D. Or. 2004). · cites it 2× “In the City of Eugene litigation, the Marion County Circuit Court found the PERB violated ORS § 238.300 by using outdated actuarial factors to calculate member retirement benefits.”
James v. State of Oregon, 471 P.3d 93 (Or. 2020). “State of Oregon Second, petitioners rely on former ORS 238.300(2)(a) (2017), which provided that Tier One and Tier Two mem- bers “shall receive a service retirement allowance which shall consist of * * * [a] life pension (nonrefund) for cur- rent service provided by the…”
Stovall v. State of Oregon, 922 P.2d 646 (Or. 1996). “” ORS 238.300(1), (2). Employer contributions are placed in PERF, which is a “trust fund, separate and distinct from the General Fund,” established for the purpose of providing benefits to PERS members.”
Bowen v. Pub. Employees Ret. Bd., 206 P.3d 232 (Or. Ct. App. 2009). “005; ORS 238.300. However, under former ORS 238.”
English v. Pub. Employees Ret. Bd., 216 P.3d 342 (Or. Ct. App. 2009). “” ORS 238.300. Within 60 days of receiving the first benefit payment, a PERS member can elect to convert his or her “service retirement allowance” into a “service retirement annuity.”
Sirois v. PERS, 335 Or. App. 731 (Or. Ct. App. 2024). “’ ORS 238.300. Within 60 days of receiving the first benefit payment, a PERS mem- ber can elect to convert his or her ‘service retirement allow- ance’ into a ‘service retirement annuity.”
— Or. Rev. Stat. § 238.300(1) — 2 cases
Strunk v. Pub. Employees Ret. Bd., 108 P.3d 1058 (Or. 2005). “* * * Under ORS 238.300 (2001), however, petitioners were promised calculation of their benefits under the formula which would produce the highest value.”
Stovall v. State of Oregon, 922 P.2d 646 (Or. 1996). “” ORS 238.300(1), (2). Employer contributions are placed in PERF, which is a “trust fund, separate and distinct from the General Fund,” established for the purpose of providing benefits to PERS members.”
— Or. Rev. Stat. § 238.300(2) — 1 case
Strunk v. Pub. Employees Ret. Bd., 108 P.3d 1058 (Or. 2005). “* * * Under ORS 238.300 (2001), however, petitioners were promised calculation of their benefits under the formula which would produce the highest value.”
— Or. Rev. Stat. § 238.300(2)(a) — 4 cases
Strunk v. Pub. Employees Ret. Bd., 108 P.3d 1058 (Or. 2005). “* * * Under ORS 238.300 (2001), however, petitioners were promised calculation of their benefits under the formula which would produce the highest value.”
City of Eugene v. State, 117 P.3d 1001 (Or. 2005). “260(12) [10] and ORS 238.300(2)(a) by requiring employers to match all earnings allocated to members' variable annuity accounts.”
City of Eugene v. STATE, PERB, 137 P.3d 1288 (Or. 2006). “260(12) and ORS 238.300(2)(a) require that the PERB initially calculate the Variable Annuity Account earnings on the same basis as the regular annuity account earnings, and both the regular account and Variable Account annuities must then be compiled together to determine the…”
James v. State of Oregon, 471 P.3d 93 (Or. 2020). “State of Oregon Second, petitioners rely on former ORS 238.300(2)(a) (2017), which provided that Tier One and Tier Two mem- bers “shall receive a service retirement allowance which shall consist of * * * [a] life pension (nonrefund) for cur- rent service provided by the…”
— Or. Rev. Stat. § 238.300(2)(a)(B) — 2 cases
Moro v. State of Oregon, 351 P.3d 1 (Or. 2015). “There are three broad categories of PERS members: Tier One members were hired before January 1, 1996; Tier Two members were hired between January 1, 1996, and August 28, 2003; and Oregon Public Service Retirement Plan (OPSRP) members were hired after August 28, 2003.”
— Or. Rev. Stat. § 238.300(2)(b) — 1 case
Strunk v. Pub. Employees Ret. Bd., 108 P.3d 1058 (Or. 2005). “* * * Under ORS 238.300 (2001), however, petitioners were promised calculation of their benefits under the formula which would produce the highest value.”
— Or. Rev. Stat. § 238.300(2)(b)(A) — 3 cases
Strunk v. Pub. Employees Ret. Bd., 108 P.3d 1058 (Or. 2005). “* * * Under ORS 238.300 (2001), however, petitioners were promised calculation of their benefits under the formula which would produce the highest value.”
City of Eugene v. State, 117 P.3d 1001 (Or. 2005). “260(12) [10] and ORS 238.300(2)(a) by requiring employers to match all earnings allocated to members' variable annuity accounts.”
Arken v. City of Portland, 263 P.3d 975 (Or. 2011). “ORS 238.300. At retirement, a PERS member is entitled to receive a service retirement allowance based on the formula that produces the highest pension amount.”
— Or. Rev. Stat. § 238.300(2)(b)(B) — 1 case
Strunk v. Pub. Employees Ret. Bd., 108 P.3d 1058 (Or. 2005). “* * * Under ORS 238.300 (2001), however, petitioners were promised calculation of their benefits under the formula which would produce the highest value.”
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