12
T h e R e tir e m e n t A c t
FO R T Y-T H IR D L E G IS L A T IV E A SSE M B L Y
—R E G U LA R SESSIO N
REENGRO SSED
House Bill No. 344
(As Amended)
Introduced by Rephesentatives V A N D Y K E ,
THOM AS, FR ISBEE, M OORE and M A N LEY
W ILSON and Senators M cK EN N A and
P A U L P AT TER SO N and read first time
February 3, 1945.
A BIEL
For an act establishing a system of retire
ment and of benefits at retirement or
death for certain officers and employes
of the state and its political subdivisions;
providing for the integration of other
similar systems with this system; provid
ing for the costs of the system; appropri
ating money therefor; and providing a
savings clause.
Be It Enacted by the People
of the State of Oregon:
Section 1. This act shall be known as the
public employes retirement act.
Section 2. As used in this act
(1) the term “public employer” means
the state, one of its agencies or one of its
political subdivisions;
(2) the term “ employe” includes, in addi
tion to employes, public officers, but not
persons employed as independent contrac
tors.
(3) the term “ volunteer fire-fighter”
means a fire-fighter whose position norm
ally requires less than 600 hours of service
per year.
(4) the term “ salary” means the remun
eration paid an employe in cash out of the
funds of a public employer in return for
his services to the employer, plus the mone
tary value, as determined by the public
employes retirement board, of whatever
living quarters, board, lodging, fuel, laun
dry and other advantages the employer
furnishes him in return for his services.
(5) the term “ annunity” means payments
for life derived from contributions made
by a member as provided in this act.
(6) the term “ pension” means annual
payments for life derived from contribu
tions by one or more public employers.
(7) the term “ continuous service” means
service not interrupted for more than five
years.
Section 3. A system of rettirement and of
benefits at retirement or death for employes
of public employers is hereby established
and shall be known as the public employes
retirement system. Any similar system be
ing operated by a public employer at the
time this act takes effect may be inte
grated into this system as hereinafter pro
vided.
Section 4. (1) The governing authority of
the system shall be a board of five persons
appointed by the governor and known as
the public employes retirement board.
(2) The board shall have (a) the powers
and privileges of a corporation and (b) the
power and duty, subject to the limitations
of this act, of managing the system.
(3) The board (a) shall, at its first meet
ing each year, designate one of its mem
bers to serve as chairman of the board for
the remainder of the year and until his
successor is designated and takes that of
fice; (b) shall arrange for actuarial service
for the system; (c) shall employ an execu
tive secretary as hereinafter provided; (d)
shall create such other positions as it deems
necessary to sound and economical admin
istration of the system, which positions the
executive secretary shall fill by appoint
ment; and (e) shall, with the approval of
the budget director, fix the salaries of all
persons employed for purposes of adminis
tering the system.
(4) The attorney general shall be the le
gal advisor of the board.
(5) A member of the board shall receive
no compensation for his services as such,
but shall be reimbursed from the public
employes retirement fund for expenses in
cidental to his rendering those services.
Section 5. (1) Of the five members of
the board, two shall be citizens (a) who
have resided in the state for two years im
mediately preceding their appointment to
the board and (b) neither of whom (i) is
an employe of a public employer during his
term of office on the board or (ii) has been
such an employe for two years immediately
preceding his appointment to the board.
(2) The other three of the first five
members of the board shall be persons who
would be eligible for membership in the
system if it were established at the time
of their appointment. A ll successors of
any of the three shall be members of the
system.
(3) Of the first five members of the
board, the governor shall designate one to
serve until Ju ly 1, 1946, one until Ju ly 1,
1947, one until Ju ly 1, 1948, one until Ju ly
1, 1949, and one until Ju ly 1, 1950. Except
as this section otherwise provides, a mem
ber of the board other than one of these
five shall serve for five years and until
his successor is appointed and takes office.
Each member of the board shall have the
same qualifications as this act prescribes
for his predecessor.
(4) A member of the board who is not
one of its first five members andw ho is
required to be a member of the system in
order to be a member of the board shall
be appointed from a list of five members
of the system which its membership nom
inates, in accordance with a system of
nominations prescribed by the governor,
for membership on the board.
(5) In the event that a member of the
board fails to complete the term of office
previously provided for him in this section
the governor shall appoint a person to suc
ceed him as a member of the board for the
unexpired portion of the term.
Section 6. Subject to the limitations of
this act the board shall, from time to time,
establish rules and regulations for transact
ing its business and administering the sys
tem. No such rule shall have effect, how
ever. until 10 days after all the following
conditions are substantially met:
(1) A copy of the rule, in the form in
which the board proposes it. shall be de
livered. within 30 davs after the board pro
poses it, to the budget director and to all
public employers participating in the sys
tem.
(2) As soon as such an employer receives