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Oregon Revised Statutes

Or. Rev. Stat. § 238.660 (2026)

Fund generally; board review of legislative proposals

✓ current as of May 2026
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      238.660 Fund generally; board review of legislative proposals. (1) The Public Employees Retirement Fund is declared to be a trust fund, separate and distinct from the General Fund, for the uses and purposes set forth in this chapter and ORS chapter 238A and ORS 237.950 to 237.980, and for no other use or purpose, except that this provision shall not be deemed to amend or impair the force or effect of any law of this state specifically authorizing the investment of moneys from the fund. Interest earned by the fund shall be credited to the fund. Except as otherwise specifically provided by law, the Public Employees Retirement Board established by ORS 238.630 is declared to be the trustee of the fund. Consistent with the legislative intent expressed in ORS 238.601, and to the extent it is consistent with the board’s fiduciary duties, the board shall give equal consideration to the interests of participating public employers and the interests of members. Nothing in this subsection shall be construed to impose a fiduciary duty on the board to consider the interests of public employers, and the board shall consider the interests of public employers only with respect to matters unrelated to the board’s fiduciary duties as trustee of the fund.

      (2) Until all liabilities to members and their beneficiaries are satisfied, assets of the fund may not be diverted or otherwise put to any use that is not for the exclusive benefit of members and their beneficiaries. This subsection does not limit return of employer contributions for health benefits in the manner provided by ORS 238.410, 238.415 and 238.420 upon satisfaction of all liabilities for health benefits under those sections.

      (3) The State of Oregon and other public employers that make contributions to the fund have no proprietary interest in the fund or in the contributions made to the fund by them. The state and other public employers disclaim any right to reclaim those contributions and waive any right of reclamation they may have in the fund. This subsection does not prohibit alteration or refund of employer contributions if the alteration or refund is authorized under this chapter or ORS chapter 238A and is due to erroneous payment or decreased liability for employer contributions under the system. This subsection does not prohibit the offset of contributions to the individual account program under ORS 238.229 (5).

      (4) The board may accept gifts of money or other property from any source, given for the uses and purposes of the system. Money so received shall be paid into the fund. Money or other property so received shall be used for the purposes for which received. Unless otherwise prescribed by the source from which the money or other property is received, the money shall be considered as income of the fund and the other property shall be retained, managed and disposed of as are investments of the fund.

      (5) All moneys paid into the fund shall be deposited with the State Treasurer, who shall be custodian of the fund and pay all warrants drawn on it in compliance with law. No such warrant shall be paid until the claim for which it is drawn is first approved by the director or designee and otherwise audited and verified as required by law. Monthly, each beneficiary’s gross benefit shall be calculated; applicable deductions made for taxes, insurance and other withholdings; and the net amount paid to the beneficiary, by check or by electronic funds transfer (EFT) to the beneficiary’s bank. A deduction summary shall be made, by type, and a check issued for the aggregate of each type for transmittal to the appropriate taxing jurisdiction, vendor or institution. A voucher shall be prepared and transmitted to the Oregon Department of Administrative Services for reimbursement of the checking account, and the department shall draw a warrant on the State Treasurer, payable to the Public Employees Retirement System, for the amount thereof.

      (6) Any warrant, check or order for the payment of benefits or refunds under the system out of the fund issued by the board which is canceled, declared void or otherwise made unpayable pursuant to law because it is outstanding and unpaid for a period of more than two years, may be reissued by the board without bond if the payee is located after such warrant, check or order is canceled, declared void or otherwise made unpayable pursuant to law.

      (7) All references in this chapter to checks or warrants are subject to the provisions of ORS 291.001.

      (8) The board shall provide for an annual audit of the retirement fund and for an annual report to the Legislative Assembly and to all members of, retirees of, and all employers participating in, the system. The annual report must contain financial statements prepared in accordance with generally accepted accounting principles. The financial statements must include the report of any independent auditor.

      (9) The board may review legislative proposals for changes in the benefits provided under this chapter and ORS chapter 238A and may make recommendations to committees of the Legislative Assembly on those proposed changes. In making recommendations under this subsection, the board acts as a policy advisor to the Legislative Assembly and not as a fiduciary. In making recommendations under this subsection on the Oregon Public Service Retirement Plan established by ORS chapter 238A, the board shall seek to maintain the balance between benefits and costs, and the relative risk borne by employers and employees with respect to investment performance, reflected in ORS chapter 238A as in effect on January 1, 2004.

      (10) The board shall appoint a committee to advise the board on legislative proposals for changes in the benefits provided under this chapter and ORS chapter 238A. The committee must have an equal number of members representing labor and management. No costs of reviewing legislative proposals and making recommendations under this subsection may be charged to the fund. Any member of the committee who is an active member of the system shall be released by the participating public employer who employs the member for the purpose of conducting the official business of the committee, and the wages or salary of the member may not be reduced by the employer during periods that the member is released from duty for the purpose of conducting the official business of the committee. [Formerly 237.271; 1997 c.121 §1; 1999 c.317 §8; 1999 c.407 §6; 2001 c.945 §3; 2003 c.17 §2; 2003 c.625 §29; 2003 c.733 §60; 2009 c.889 §2]

Notes of Decisions
Cited in 14 cases, 1996–2018 · leading case: Arken v. City of Portland, 263 P.3d 975 (Or. 2011).
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Arken v. City of Portland, 263 P.3d 975 (Or. 2011). · cites it 10× “embers who were ultimately determined to be owed money by PERS because the COLA payments they should have received were greater than the benefit reductions caused by the 2003 PERS reform legislation, the continued withholding of the COLA payments was “contrary to ORS Chapter…”
White v. Pub. Employees Ret. Bd., 268 P.3d 600 (Or. 2011). · cites it 7× “They further argue that, in making decisions to settle or pursue litigation, and when exercising discretion in allocating funds to specific accounts, PERB may consider the stability and viability of the fund and the longer term interests of all PERS beneficiaries — and not…”
Bell v. Pub. Employees Ret. Bd., 247 P.3d 319 (Or. Ct. App. 2010). · cites it 7× “] * * * Except as otherwise specifically provided by law, the Public Employees Retirement Board established by ORS 238.630 is declared to be the trustee of the fund.”
Moro v. State of Oregon, 351 P.3d 1 (Or. 2015). · cites it 2× “ORS 238.660(1); see also White v. Public Employees Retirement Board, 351 Or 426, 437-38 , 268 P3d 600 (2011) (discussing the standards for the board when serving as a trustee).”
Stovall v. State of Oregon, 922 P.2d 646 (Or. 1996). · cites it 2× “ORS 238.660(1). Participating PERS employers “have no proprietary interest in the fund or in the contributions made to the fund.”
Strunk v. Pub. Employees Ret. Bd., 139 P.3d 956 (Or. 2006). “ORS 238.660(1) provides: “The Public Employees Retirement Fund is declared to be a trust fund, separate and distinct from the General Fund, for the uses and purposes set forth in this chapter and ORS chapter 238A and ORS 237.”
Pebb v. Ohsu, 132 P.3d 1061 (Or. Ct. App. 2006). · cites it 2× “601 and ORS 238.660 (describing duties of Public Employees Retirement Board, as trustee of Public Employees Retirement Fund).”
Wilkinson v. Pub. Employees Ret. Bd., 69 P.3d 1266 (Or. Ct. App. 2003). “ORS 238.660; OAR 459-005-0010(2). When a member of PERS dies before retiring, as decedent did in the present case, 2 “the fund shall be paid to the beneficiaries designated by the member.”
Bowen v. Pub. Employees Ret. Bd., 206 P.3d 232 (Or. Ct. App. 2009). “ORS 238.660; OAR 459-005-0010(2). The 1981 PERS statutes provided only two methods by which a public employee could receive PERS credit for prior non-PERS service.”
Oregon State Police Officers' Ass'n v. State, 918 P.2d 765 (Or. 1996). · cites it 4× “ntract expressly in relation to: "The right of a person to a pension, an annuity or a retirement allowance to the return of contribution, the pension, annuity or retirement allowance itself, any optional benefit or death benefit, or any other right accrued or accruing to any…”
State ex rel. Pub. Employees' Benefit Bd. v. Oregon Health & Sci. Univ., 132 P.3d 1061 (Or. Ct. App. 2006). · cites it 2× “601 and ORS 238.660 (describing duties of Public Employees Retirement Board, as trustee of Public Employees Retirement Fund).”
Eugene Water & Elec. Bd. v. Pub. Emps. Ret. Bd., 430 P.3d 568 (Or. Ct. App. 2018). · cites it 2× “3d 821 (2009) (citing ORS 238.660 ; OAR 459-005-0010(2) ); Wilkinson v.”
Show all 14 citing cases →
— Or. Rev. Stat. § 238.660(1) — 9 cases
White v. Pub. Employees Ret. Bd., 268 P.3d 600 (Or. 2011). “They further argue that, in making decisions to settle or pursue litigation, and when exercising discretion in allocating funds to specific accounts, PERB may consider the stability and viability of the fund and the longer term interests of all PERS beneficiaries — and not…”
Moro v. State of Oregon, 351 P.3d 1 (Or. 2015). “ORS 238.660(1); see also White v. Public Employees Retirement Board, 351 Or 426, 437-38 , 268 P3d 600 (2011) (discussing the standards for the board when serving as a trustee).”
Bell v. Pub. Employees Ret. Bd., 247 P.3d 319 (Or. Ct. App. 2010). “] * * * Except as otherwise specifically provided by law, the Public Employees Retirement Board established by ORS 238.630 is declared to be the trustee of the fund.”
Arken v. City of Portland, 263 P.3d 975 (Or. 2011). “embers who were ultimately determined to be owed money by PERS because the COLA payments they should have received were greater than the benefit reductions caused by the 2003 PERS reform legislation, the continued withholding of the COLA payments was “contrary to ORS Chapter…”
Strunk v. Pub. Employees Ret. Bd., 139 P.3d 956 (Or. 2006). “ORS 238.660(1) provides: “The Public Employees Retirement Fund is declared to be a trust fund, separate and distinct from the General Fund, for the uses and purposes set forth in this chapter and ORS chapter 238A and ORS 237.”
— Or. Rev. Stat. § 238.660(2) — 1 case
Stovall v. State of Oregon, 922 P.2d 646 (Or. 1996). “ORS 238.660(1). Participating PERS employers “have no proprietary interest in the fund or in the contributions made to the fund.”
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