Oregon 2023 Regular Session

Oregon House Bill HB2875

Introduced
1/9/23  
Refer
1/16/23  
Report Pass
4/3/23  
Engrossed
4/13/23  
Refer
4/19/23  

Caption

Relating to final average salary under the Oregon Public Service Retirement Plan.

Impact

If passed, HB 2875 would amend existing state law regarding retirement benefits for public employees. By creating distinct rules concerning overtime for Oregon State Police, the bill seeks to ensure fairness in the calculation of retirement benefits. This could significantly affect the financial planning of future retirees by altering the benefits they expect to receive based on their service and salary history.

Summary

House Bill 2875 focuses on the calculation of the final average salary for members of the Oregon Public Service Retirement Plan (PERS). Specifically, it aims to adjust how overtime hours worked by Oregon State Police are treated in determining final average salary calculations. The bill establishes a separate limitation on the inclusion of overtime hours worked, ensuring that only a specified number of overtime hours can be factored into the salary, which is an important aspect of pension calculations for public employees in Oregon.

Sentiment

The sentiment around HB 2875 appears to be generally supportive among legislators focused on refining retirement benefit structures and ensuring budgetary constraints are respected. However, it may also face scrutiny from public employee groups concerned that stricter limitations on overtime could unfairly reduce the final pension benefits derived from crucial years of service. Overall, the bill presents a technical adjustment that may lead to broader implications for public sector employment and financial security for retirees.

Contention

A notable point of contention in the discussions surrounding HB 2875 is the balance between controlling state pension liabilities and adequately compensating public employees for their service. Critics might argue that limiting overtime in this manner could discourage potential recruits or diminish job satisfaction among current employees. Advocates, on the other hand, contend that these measures are necessary for the sustainability of the pension system, especially in a fiscal environment requiring careful management of state resources.

Companion Bills

No companion bills found.

Previously Filed As

OR SB195

Relating to final average salary under the Oregon Public Service Retirement Plan.

OR SB663

Relating to the calculation of final average salary under the Public Employees Retirement System.

OR SB475

Relating to the application of overtime under the Oregon Public Service Retirement Plan.

OR HB3363

Relating to the application of overtime under the Oregon Public Service Retirement Plan.

OR HB2701

Relating to the Oregon Public Service Retirement Plan.

OR HB3033

Relating to the status of student workers under the Oregon Public Service Retirement Plan.

OR HB4116

Relating to police officers under the Public Employees Retirement System.

OR HB4045

Relating to adjustments in classifications under the Public Employees Retirement System.

OR H7274

Amends sections of law relating to retirement of various public employees and the calculation of their final average salary and service accruals.

OR HB4876

Modify definition of final average salary within Deputy Sheriff’s Retirement System

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