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Analysis of Retirement Act
By HERMAN KEHRLI
Director Bureau of Municipal Research
I. W hen Effective'
B i The act becomes effective on July
J, 1945, except those parts, of it per
taining to membership in the retire
ment system and. contributions; to the
retirement fund, which takes effect
July.'l, 1946.
*7,2-.- The governor will appoint a board
of .five members on or shortly after
July 1, 1945. This board will em ploy
an executive secretary and an actuary
to make necessary preliminary studies
and arrangements.
3. Contributions by employees and
employer agencies will begin with the
first payroll after July 1, 1946. State
and local agencies will be notified be
fore budget-making time in the spripg
as to the exact percentage of salaries
that .will have to be contributed by both
the employing agencies and the em
ployees that are covered.
4. Provisions of the act.w ith refer
ence to prior service do not become
effective until July 1, 1947, and con
tributions to provide prior service bene
fits will not be required until after
July g 1947.
I 5. There is no action required by
a governmental agency this springor
until after the retirement board has
organized and has requested personnel
information from the agency to serve'
as the basis for actuarial studies and
for setting up the necessary records..
II. How Administered
1. The act creates the public em
ployees’ retirement board of five per
sons appointed by the governor.
I 2. Executive secretary and actuary to
be appointed by the; board.
3. Administrative expense to be pro
vided by pro rata deductions from, con I
tributions of employees and employed;
agencies participating in the system^
III. Who Participates '
1. The employees of all state agencies
are automatically covered.
B 2.' The employees of all school dis
tricts are automatically; covered, except
certificated school teachers . w'hb are
members of, or who have voluntarily
excluded themselves- from, ’ the Port
land ¿teachers retirement system.
3. The employees of id! local subdivi
sions; employing fivè or more regular
employees, except school districts, "are
automatically covered, except that thè
governing board of any such local sub
division can/by a majority vote taken
before May 1, 194^ exclude itself and
itself and its employees from the
system.
4. The employees of all local subdivi
sions employing less than five regular
employees, except school districts, ' are
automatically- exempted unless thè gov
erning body of the subdivision requests'
thaÿthey be covered.
B ^ | Employees of excluded subdivision^
who are not members of a previously
established retirement system may be
covered, at any time by a majority vote
of ;the'governing board of the sub
division-.
.6. All employees who regularly work-
more than 600 hours a year sfç>r-a cov
ered agency or subdivision and who are
not rnembers of an existing retirement
system’ automatically become members
of' the system.
7. Elected officials or appointive offi
cers with fixed terms are- exempted
from membership but, may become
members of the system upon applica
tion to.the retirement board -within 3 0
days after taking o ffic ii or,-if already
in office, within 30 days after July 1,
1946.
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