Oregon Code § 238.325·Enacted ·Last updated March 01, 2026
Statute Text
Optional disability retirement allowance calculations.
(1) At any time after establishing
membership, but before the expiration of 90 days after the Public Employees
Retirement Board makes its finding that the employee is disabled, an employee
who is a member of the Public Employees Retirement System may elect to convert
the disability retirement allowance otherwise payable on the member account of
the member into a disability retirement annuity of equivalent actuarial value,
by selecting one of the optional forms named below. The election of Option 2,
2A, 3 or 3A shall be effective immediately upon the effective date of the
members disability, and in the event of death within the first 90-day period
of incapacity, payment to the beneficiary of the member shall be made in
accordance with the option selected.
Option 1. (a) A
life annuity (nonrefund) payable during the members life only, which shall be
the actuarial equivalent of the accumulated contributions under this chapter
and interest thereon credited to the member at the time the member retires (if
death occurs before the first payment is due, the member account of the member
shall be treated as though death had occurred before retirement); (b) a life
pension (nonrefund) provided by the contributions of employers and, for
benefits that accrue on or after July 1, 2020, amounts in the employee pension
stability account established for the member under ORS 238A.353 as provided in
ORS 238.320 (1)(b)(B); (c) an additional nonrefund pension for prior service
credit, including military service, credited to the member at the time the
member first becomes a member of the system, as elsewhere provided in this
chapter, which pension shall be provided by the contributions of the employer;
or
Option 2. A
reduced disability retirement allowance payable during the period of
incapacity, with the provision that after death, if death shall occur after the
effective date of the disability and during the period of incapacity, it shall
continue for the life of the beneficiary whom the member has designated in
writing duly acknowledged and filed with the board at the time of election,
should the beneficiary survive the member; or
Option 2A. A
reduced disability retirement allowance payable during the period of incapacity
which, unless modified under subsection (3) of this section, continues after
death, if death shall occur after the effective date of the disability and
during the period of incapacity, for the life of the beneficiary whom the
member nominates by written designation duly acknowledged and filed with the
board at the time of election, should the beneficiary survive the member; or
Option 3. A
reduced disability retirement allowance payable during the period of
incapacity, with the provision that after death, if death shall occur after the
effective date of the disability and during the period of incapacity, such
allowance shall continue at one-half the rate paid to the member and be paid
for the life of the beneficiary whom the member has designated in writing duly
acknowledged and filed with the board at the time of election, should the
beneficiary survive the member; or
Option 3A. A
reduced disability retirement allowance payable during the period of incapacity
which, unless modified under subsection (3) of this section, continues after
death, if death shall occur after the effective date of the disability and
during the period of incapacity, at one-half the rate paid to the member and is
paid for the life of the beneficiary whom the member nominates by written
designation duly acknowledged and filed with the board at the time of election,
should the beneficiary survive the member; or
Option 4. A
reduced disability retirement allowance payable during the period of
incapacity, with the provisions that if the member dies during the period of
incapacity and before a total of 180 monthly payments is made, the remainder of
the 180 monthly payments shall be paid monthly to the beneficiary the member
nominates by written designation duly acknowledged and filed with the board at
any time before the members death; and that if the member designates no
beneficiary to receive the monthly payments or no such beneficiary is able to
receive the monthly payments, an amount equal to the actuarial value, on the
date of the members death, of the total of the monthly payments not made to
the member shall be paid according to ORS 238.390 for disposal of an amount
credited to the member account of a member at the time of death; and that if
the beneficiary receiving monthly payments dies before the total number of
monthly payments to which the beneficiary is entitled is made, an amount equal
to the actuarial value, on the date of the beneficiarys death, of the total of
the monthly payments not made to the member and beneficiary shall be paid
according to ORS 238.390 for disposal of an amount credited to the membe