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
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.”
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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