Oregon Code § 238.730·Enacted ·Last updated March 01, 2026
Statute Text
Unfunded Actuarial Liability Resolution Program.
(1) The Public Employees
Retirement Board shall establish an Unfunded Actuarial Liability Resolution
Program. Under the program, the board shall provide technical expertise to
manage projected employer contribution rate changes. Funding plans developed under
the program must be based on actuarial reports prepared under ORS 238.605.
(2) A
participating public employer shall participate in the program.
(3) The board may
use moneys in the Employer Incentive Fund established in section 1, chapter
105, Oregon Laws 2018, for reasonable administrative costs incurred under this
section. [2018 c.105 §26; 2019 c.355 §54; 2021 c.135 §7]
Note:
The amendments to 238.730 by
section 55, chapter 355, Oregon Laws 2019, become operative July 1, 2042. See
section 64, chapter 355, Oregon Laws 2019. The text that is operative on and
after July 1, 2042, including amendments by section 8, chapter 135, Oregon Laws
2021, is set forth for the users convenience.
238.730.
(1) The Public Employees
Retirement Board shall establish an Unfunded Actuarial Liability Resolution
Program. Under the program, the board shall provide technical expertise to
manage projected employer contribution rate changes. Funding plans developed under
the program must be based on actuarial reports prepared under ORS 238.605.
(2) A
participating public employer shall participate in the program.
(Employer Incentive
Fund)
Note:
Sections 1 to 3, chapter 105,
Oregon Laws 2018, provide:
Sec. 1.
(1) The Employer Incentive Fund is
established in the State Treasury, separate and distinct from the General Fund.
Interest earned by the Employer Incentive Fund shall be credited to the fund.
Interest earned by the fund may be used under section 2, chapter 105, Oregon
Laws 2018, to match lump sum payments made under ORS 238.229.
(2) Moneys in the
fund are continuously appropriated to the Public Employees Retirement Board for
the purposes described in sections 2 and 26 [238.730], chapter 105, Oregon Laws
2018.
(3) Moneys in the
fund shall be invested in the Oregon Short Term Fund established under ORS
293.728. [2018 c.105 §1; 2019 c.355 §46]
Sec. 2.
(1)(a) The Public Employees
Retirement Board shall establish a process for distributing the moneys in the
Employer Incentive Fund established under section 1, chapter 105, Oregon Laws
2018.
(b) The process
must allow a participating public employer to apply to reserve matching amounts
in the Employer Incentive Fund by committing to make a qualifying lump sum
payment of at least $25,000 to an account established under ORS 238.229.
(2) The board
shall adopt rules establishing:
(a) The
percentage of a lump sum payment that may be matched by distributions from the
fund, not to exceed 25 percent of a qualifying lump sum payment.
(b) The maximum
matching amount that may be reserved by a participating public employer, not to
exceed the greater of:
(A) Five percent
of the unfunded actuarial liability attributable to the employer, as determined
in the most recent report prepared under ORS 238.605; or
(B) $300,000.
(c) The
qualifications for lump sum payments that may be matched under this section,
including a requirement that a qualifying lump sum payment may not be a payment
from moneys borrowed by the employer.
(d) A requirement
that the participating public employer participate in the Unfunded Actuarial
Liability Resolution Program to develop a plan under ORS 238.730.
(3)(a) For 90
days after the board begins accepting applications under subsection (1) of this
section, a participating public employer may apply to reserve matching amounts
from the Employer Incentive Fund under subsection (1) of this section only if
the unfunded actuarial liability attributable to the employer, as determined in
the most recent report prepared under ORS 238.605, is more than 200 percent of
the employers payroll for members of the Public Employees Retirement System.
(b) After the
90-day period described in paragraph (a) of this subsection, any participating
public employer may apply to reserve matching funds from the Employer Incentive
Fund under subsection (1) of this section.
(4)(a) The board
shall approve applications that meet the qualifications established under
subsection (2) of this section in the order in which the applications are
submitted. The board shall continue approving applications as long as adequate
moneys in the Employer Incentive Fund are available.
(b) After all of
the moneys available in the Employer Incentive Fund are reserved for matching
under paragraph (a) of this subsection, the board may establish a waiting list
for the remaining timely submitted applications and, if sufficient moneys in
the Employer Incentive Fund become available, shall approve, in the order in
which the applications were submitted, applications that meet the
qualifications established under subsection (2) of this section.
(5) The board
shall tra