HB 2113 And PERS Legislators, It’s A Great Opportunity

HB 2113, which was passed by the Oregon House and Senate by a cumulative vote of 86 to 4,  changes the procedure by which Oregon legislators join PERS.  Under the prior law, if a legislator wanted to join PERS, that legislator had to give written notice to PERS within 30 days of taking office that he or she wanted to join.   If that written notice was not given to PERS within the 30 day period, the legislator automatically became a member of the state deferred compensation plan.

HB 2113 flips the notice requirement.  Now, a legislator will automatically become a PERS member unless the legislator gives written notice to PERS within 30 days of taking office that he or she does not want to join.  HB 2113 also provides that if a legislator joins PERS on or after August 29, 2003, such legislator must continue to be a PERS member for his or her entire service as a legislator.  Under this law, once a legislator joins PERS the legislator can’t get out, except for a major one time exception that is also provided by HB 2113.

The exception exists due to the fact that the HB 2113  procedure is  retroactive to August 29, 2003.  All elections by legislators to join PERS or to not join PERS made on or after August 29, 2003 are void.  PERS is required to notify all legislators who are affected by this retroactive application of the PERS election rule and those legislators  will have 90 days from the date of that notice to make a new PERS election.  While that means  that  any legislators who do not give PERS written notice that he or she is not joining will automatically become PERS members, it also means that legislators who joined PERS on or after August 29, 2003 now have the chance to get out of PERS but telling PERS that they do not want to join.  My records show that 58 out of Oregon’s 90 current legislators took office on or after August 29, 2003.  Those who first joined PERS as legislators will now have the opportunity to change their PERS status.

HB 2113 was considered by the legislature to be so important to the people of Oregon that it was passed with an Emergency Clause.  The Emergency Clause said: This 2011 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2011 Act takes effect on  its  passage.  HB 2113 was introduced into the legislature at the request of Governor Kitzhaber.  Apparently, the Governor believed that if legislators who joined PERS on or after August 29, 2003 were not given the chance to get out of PERS the people of Oregon might riot, they might get very sick or maybe both.  Congratulations to the Governor and hopefully, those legislators who are now eligible to get out of PERS will size this one time, 90 day opportunity to regain their independence on PERS matters.

If you want to know if your legislators first took office on or after August 29, 2003 and if they joined PERS, send a comment to this article or an e-mail to me at danre@inrethepeople.com asking that question and I will let you know.   If either of your legislators will be required to make a new PERS election, you can let them know whether or not you want them to join PERS.    Those legislators represent you and they need to know how you feel about this very important issue.

HB 2113 made other changes to the  PERS laws in addition to the procedure for legislators to join PERS.  If I see other note worthy  changes, I will write about them on this site.

About Dan Re

I am an attorney who has lived in Bend and practiced law since 1981. In educating myself about the Oregon Public Employees Retirement System (PERS), I was shocked at how the PERS laws were changed by the legislature, once legislators were allowed to join PERS in 1971, 26 years after PERS was first created. Those changes personally benefitted the legislators who made them at the direct financial expense of the people they were elected to represent. That is wrong and I intend to change it. In 2009, I started a non-profit 501(c)(4) corporation, In RE The People, Inc., for the purpose of informing concerned citizens of what happened regarding PERS and other issues of social and civic importance. I then created this blog to further that objective.
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