1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
A-Engrossed
Senate Bill 847
Ordered by the Senate March 14
Including Senate Amendments dated March 14
Printed pursuant to Senate Interim Rule 213.28 by order of the President of the Senate in conformance with pre-
session filing rules, indicating neither advocacy nor opposition on the part of the President (at the request
of Governor Tina Kotek for Public Employees Retirement System)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure. The statement includes a measure digest written in compliance with applicable readability standards.
Digest: The Act makes changes to the health insurance subsidies retired PERS members can get.
(Flesch Readability Score:71.7).
[Changes the calculation of] Increases the Retirement Health Insurance Account subsidy under
the Public Employees Retirement System.
Allows members of the Oregon Public Service Retirement Plan to receive the Retiree Health
Insurance Premium Account subsidy.
A BILL FOR AN ACT
Relating to health insurance subsidies under the Public Employees Retirement System; amending
ORS 238.420 and 238A.050.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 238.420 is amended to read:
238.420. (1) As used in this section, “eligible retired member” means:
(a) A retired member of the Public Employees Retirement System who is retired for service or
disability, is receiving a retirement allowance or benefit under the system, had eight years or more
of qualifying service in the system at the time of retirement or is receiving a disability retirement
allowance including a pension computed as if the member had eight years or more of creditable
service in the system at the time of retirement, and is eligible for federal Medicare coverage; or
(b) A person who is a surviving spouse or dependent of a deceased eligible retired member as
provided in paragraph (a) of this subsection at the time of death, who is eligible for federal Medicare
coverage and who:
(A) Is receiving a retirement allowance or benefit under the system; or
(B) Was covered at the time of the retired member’s death by the retired member’s health in-
surance contracted for under ORS 238.410, and the member retired before May 1, 1991.
(2) For purposes of subsection (1)(a) of this section, “qualifying service” means creditable service
in the system and any periods of employment with an employer participating in the system required
of the employee before becoming a member of the system.
(3) Of the monthly cost of coverage for an eligible retired member under a health care insurance
contract that provides [coverage supplemental to federal] Medicareor Medicare supplement cover-
age entered into under ORS 238.410, an amount equal to [$60] $100 or the total monthly cost of that
coverage, whichever is less, shall be paid from the Retirement Health Insurance Account established
by subsection (4) of this section, and any monthly cost in excess of [$60] $100 shall be paid by the
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 468 A-Eng. SB 847
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
eligible retired member in the manner provided in ORS 238.410 (4). Any amount paid under this
subsection shall be exempt from all state, county and municipal taxes imposed on the eligible retired
member.
(4) Pursuant to section 401(h) of the Internal Revenue Code, the Retirement Health Insurance
Account is established within the Public Employees Retirement Fund, separate and distinct from the
General Fund. Interest earned by the account shall be credited to the account. All moneys in the
account are continuously appropriated to the Public Employees Retirement Board and may be used
only to pay costs of health care insurance contract coverage under subsection (3) of this section,
paying the administrative costs incurred by the board under this section and investment of moneys
in the account under any law of this state specifically authorizing that investment.
(5) The Retirement Health Insurance Account shall be funded by employer contributions. Each
public employer that is a member of the system shall transmit to the board such amounts as the
board determines to be actuarially necessary to fund the liabilities of the account. The level of em-
ployer contributions shall be established by the board using the same actuarial assumptions it uses
to determine employer contribution rates to the Public Employees Retirement Fund. The amounts
shall be transmitted at the same time and in the same manner as contributions for pension benefits
are transmitted under ORS 238.225.
(6) As provided in section 401(h)(5) of the Internal Revenue Code of 1986, upon satisfaction of
all liabilities for providing benefits described in subsection (1) of this section, any amount remaining
in the Retirement Health Insurance Account shall be returned to the employers participating in the
retirement system on an equitable basis as determined by the board.
(7) No member of the system shall have an interest in the Retirement Health Insurance Account.
SECTION 2. ORS 238A.050 is amended to read:
238A.050. (1) The Oregon Public Service Retirement Plan is part of the Public Employees Re-
tirement System and is administered by the Public Employees Retirement Board.
(2) ORS 238.008, 238.225, 238.229, 238.235, 238.285, 238.410, 238.415, 238.420, 238.445, 238.447,
238.450, 238.455, 238.458, 238.460, 238.465, 238.470, 238.600, 238.601, 238.605, 238.610, 238.615, 238.618,
238.630, 238.635, 238.640, 238.645, 238.655, 238.660, 238.661, 238.665, 238.675, 238.692, 238.694, 238.695,
238.696, 238.698, 238.700, 238.705, 238.710 and 238.715 apply to the Oregon Public Service Retirement
Plan.
(3) The Oregon Investment Council shall invest the assets of the Oregon Public Service Retire-
ment Plan as a part of the Public Employees Retirement Fund. Except as provided by subsection (4)
of this section, the investment of Oregon Public Service Retirement Plan assets is subject to the
provisions of ORS 293.701 to 293.857. The Oregon Investment Council may invest assets of the indi-
vidual account program and pension program differently than the other assets of the Public Em-
ployees Retirement System.
(4) Investment of the assets of the Oregon Public Service Retirement Plan is not subject to the
limitations imposed by ORS 293.726 (6).
(5) The board may contract with a private provider for the administration of the individual ac-
count program. The board is not subject to the provisions of ORS chapter 279A or 279B in awarding
a contract under the provisions of this subsection. The board shall establish procedures for inviting
proposals and awarding contracts under this subsection.
[2]