6
OPERATING OUTLINE OF OREGON PUBLIC
EMPLOYEES RETIREMENT ACT
Prepared by Barrett A. Coates, Actuary
Note: Actuarial calculations will be
based on this outline unless modifica
tions are made necessary by legal inter
pretation. This outline is not intended
to cover all phases o f the Retirement
A ct but rather only those sections
which affect the greater number of
public employees and participating
agencies.
Administration (Section 4-7)
System is managed by Public Em
ployes’ Retirement Board o f five per
sons appointed by Governor. Three of
these are members of the System. Board
appoints Executive Secretary.
Administrative Expenses (Section 11)
Expenses to be charged against mem
bers and against employers in propor
tion to their contributions.
Membership (Section 8)
A ll employes o f State, State agencies
and political subdivisions are covered,
with the following exceptions:
1. Employes who are members of, or
eligible for membership in any retire
ment system established by a public
employer prior to Ju ly 1, 1946, (e.g.
Portland, Police and Fire Systems) or
in the T .R .F .A . (School D istrict No. 1
Multnomah Co.) are excluded. These
groups may come in only by "integra
tion” of their systems with the State
System.
2. Political subdivisions with less
than 5 employes are excluded unless
they elect to come in. (note: School
Districts, regardless of size, must come
in)-
3. Political subdivisions with more
than 5 employes (except school dis
tricts) may elect to stay out o f Sys
tem by notifying Board in writing not
later than May 1, 1946.
4. Employes whose position normally
requires less than 600 hours service per
year are excluded (except volunteer
firemen by special arrangement).
5. Inmates o f State institutions are
excluded, also trainees in State Institu
tions.
6. Elected officials and persons ap
pointed for a fixed term are excluded
unless they elect to join System within
30 days.
7. If an individual employe has com
menced to purchase a retirement annu
ity which his employer deems adequate,
the employer and the Board may ex
empt him from the A ct, and employer
may make contributions toward cost
of the annuity.
Contributions by Members
(Section 14)
1. Each member pays (by payroll
deduction) a percentage of his com
pensation actuarially calculated to be
sufficient to provide approximately
one-half o f the following service re
tirement benefit, which is the objective
o f the A ct with respect to service a f
ter Ju ly 1, 1946.
a. For policemen and firemen: if
not over 35 years o f age when join
ing the System, a retirement allow
ance at age 60 of 50 per cent o f sal
ary; if over 35 years of age when
joining the System, a retirement al
lowance at age 60 o f 2 per cent of
salary for each year served under the
A ct.
b. For miscellaneous employes (all
except policemen and firem en): if
not over 3 5 years of age when join
ing the System, a retirement allow
ance at age 65 of 50 per cent o f sal
ary; if over 3 5 years o f age when
joining the System, a retirement al
lowance at age 65 o f 1% per cent of
salary for, each year served under the
Act.