68th OREGON LEGISLATIVE ASSEMBLY--1995 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 2241
Senate Bill 562
Sponsored by Senator KENNEMER; Senators BAKER, LIM, SHANNON,
STULL, YIH
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 as
introduced.
Exempts from Oregon income taxation amounts paid as benefits
from state and federal public employee retirement plans to extent
benefits are attributable to service before September 29, 1991.
Applies to all taxable years beginning on or after January 1,
1991.
Eliminates certain retirement benefit increases payable to
state employees who have no service before September 29, 1991.
Eliminates certain retirement allowance increases for person
first employed on or after effective date of Act.
Requires Department of Revenue to calculate and pay refunds for
taxes paid in tax years beginning on or after January 1, 1991.
Requires reductions in refunds payable to state retirees for
certain benefits paid to retirees since 1991.
A BILL FOR AN ACT
Relating to public employee retirement; creating new provisions;
amending ORS 237.201, 237.209, 237.230, 316.157 and 316.680 and
section 12, chapter 796, Oregon Laws 1991; and repealing
section 14, chapter 796, Oregon Laws 1991, and section 26,
chapter 815, Oregon Laws 1991.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 237.201 is amended to read:
237.201. (1) The right of a person to a pension, an annuity or
a retirement allowance, to the return of contribution, the
pension, annuity or retirement allowance itself, any optional
benefit or death benefit, or any other right accrued or accruing
to any person under the provisions of ORS 237.001 to 237.315, and
the money in the various funds created by ORS 237.271 and
237.281, shall be exempt from garnishment and all state, county
and municipal taxes heretofore or hereafter imposed, except as
provided under ORS chapter 118, shall not be subject to
execution, garnishment, attachment or any other process or to the
operation of any bankruptcy or insolvency law heretofore or
hereafter existing or enacted except for execution or other
process upon a support obligation or an order or notice entered
pursuant to ORS 25.060, 25.311, 25.314, 25.450, 419B.408 or
419C.600, and shall be unassignable.
(2) Subsection (1) of this section does not apply to state
personal income taxation of amounts paid under ORS 237.001 to
237.315 { + that are attributable to service by a member
rendered on or after September 29, 1991 + }.
SECTION 2. ORS 316.680 is amended to read:
316.680. (1) There shall be subtracted from federal taxable
income:
(a) The interest or dividends on obligations of the United
States and its territories and possessions or of any authority,
commission or instrumentality of the United States to the extent
includable in gross income for federal income tax purposes but
exempt from state income taxes under the laws of the United
States. However, the amount subtracted under this paragraph shall
be reduced by any interest on indebtedness incurred to carry the
obligations or securities described in this paragraph, and by any
expenses incurred in the production of interest or dividend
income described in this paragraph to the extent that such
expenses, including amortizable bond premiums, are deductible in
determining federal taxable income.
(b) The amount of any federal income taxes accrued by the
taxpayer during the taxable year as described in ORS 316.685,
less the amount of any refunds of federal taxes previously
accrued for which a tax benefit was received.
(c)(A) If the taxpayer does not qualify for the subtraction
under subparagraph (B) of this paragraph, compensation (other
than pension or retirement pay) received for active service
performed by a member of the Armed Forces of the United States in
an amount not to exceed $3,000 per annum.
(B) For the tax year of initial draft or enlistment into the
Armed Forces of the United States or for the tax year of
discharge from or termination of full-time active duty for the
Armed Forces of the United States, compensation (other than
pension or retirement pay or pay for service when on military
reserve duty) paid by the Armed Forces of the United States for
services performed outside this state, if the taxpayer is on
active duty as a full-time officer, enlistee or draftee, with the
Armed Forces of the United States.
(d) For taxable years open to audit on October 5, 1973, the
amount of any deferred income which was added to federal taxable
income for state tax purposes under subsection (2)(e) of this
section in a prior taxable year and which is now added to federal
taxable income. For purposes of this paragraph, the amount
subtracted shall not exceed the amount of gain now reported on
the federal return. If the gain is a capital gain or subject to
capital gain treatment, the adjustments under this paragraph
shall be similar to the adjustments made under subsection (2)(e)
of this section in the prior year.
(e)(A) Any expenses under ORS 118.070 (6) that have not been
deducted in computing federal taxable income and have not been
and will not be claimed as deductions for Oregon inheritance tax
purposes under ORS 118.070.
(B) Amounts allowable under sections 2621 (a)(2) and 2622 (b)
of the Internal Revenue Code to the extent that the taxpayer does
not elect under section 642(g) of the Internal Revenue Code to
reduce federal taxable income by those amounts.
{ + (f) The amount of any payments received from the Public
Employes' Retirement Fund under ORS 237.001 to 237.315 that are
exempt under ORS 237.201 and any amounts received by a retiree,
or the surviving spouse of a retiree, in the taxable year in
compensation for or on account of personal services rendered in
prior years, from a pension, annuity, retirement or similar fund
under a retirement system established by any municipal
corporation or political subdivision of this state, to the extent
those amounts are attributable to service rendered before
September 29, 1991.
(g) Any amounts received by a retiree, or the surviving spouse
of a retiree, in the taxable year in compensation for or on
account of personal services rendered in prior years, from a
pension, annuity, retirement or similar fund under a retirement
system established by the United States, including the retirement
system for the performance of service in the Armed Forces of the
United States, to the extent those amounts are attributable to
service rendered before September 29, 1991. + }
(2) There shall be added to federal taxable income:
(a) Interest or dividends, exempt from federal income tax, on
obligations or securities of any foreign state or of a political
subdivision or authority of any foreign state. However, the
amount added under this paragraph shall be reduced by any
interest on indebtedness incurred to carry the obligations or
securities described in this paragraph and by any expenses
incurred in the production of interest or dividend income
described in this paragraph.
(b) Interest or dividends on obligations of any authority,
commission, instrumentality and territorial possession of the
United States which by the laws of the United States are exempt
from federal income tax but not from state income taxes. However,
the amount added under this paragraph shall be reduced by any
interest on indebtedness incurred to carry the obligations or
securities described in this paragraph and by any expenses
incurred in the production of interest or dividend income
described in this paragraph.
(c) The amount of any federal estate taxes allocable to income
in respect of a decedent not taxable by Oregon.
(d) The amount of any allowance for depletion in excess of the
taxpayer's adjusted basis in the property depleted, deducted on
the taxpayer's federal income tax return for the taxable year,
pursuant to sections 613, 613A, 614, 616 and 617 of the Internal
Revenue Code.
(e) The amount of any gain which is deferred for tax
recognition purposes upon the voluntary or involuntary conversion
or exchange of tangible real or personal property as provided
under ORS 314.290.
(f) For taxable years beginning on and after January 1, 1972,
any expenses under ORS 118.070 (6) that have been or will be
claimed as deductions for Oregon inheritance tax purposes in an
amount not to exceed the deductions actually claimed by the
taxpayer on the federal income tax return for the same taxable
year.
(g) For taxable years beginning on or after January 1, 1985,
the dollar amount deducted under section 151 of the Internal
Revenue Code for personal exemptions for the taxable year.
(3) Discount and gain or loss on retirement or disposition of
obligations described under subsection (2)(a) of this section
issued on or after January 1, 1985, shall be treated for purposes
of this chapter in the same manner as under sections 1271 to 1283
and other pertinent sections of the Internal Revenue Code as if
the obligations, although issued by a foreign state or a
political subdivision of a foreign state, were not tax exempt
under the Internal Revenue Code.
{ + (4) As used in subsection (1)(f) and (g) of this section,
' surviving spouse' means any person to whom the retiree was
married at the time of death and who is a recipient of
compensation from the pension, annuity, retirement or similar
fund on account of the marriage. + }
SECTION 3. ORS 316.157 is amended to read:
316.157. (1) In the case of a resident eligible individual,
there shall be allowed as a credit against the taxes otherwise
due under this chapter for the taxable year an amount equal to
the lesser of the tax liability of the taxpayer or nine percent
of net pension income.
(2) For purposes of this section:
(a) 'Eligible individual' means any individual who is receiving
pension income and who has attained the following age before the
close of the taxable year:
(A) For taxable years beginning on or after January 1, 1991,
and before January 1, 1993, the individual must attain 58 years
of age before the close of the taxable year.
(B) For taxable years beginning on or after January 1, 1993,
and before January 1, 1995, the individual must attain 59 years
of age before the close of the taxable year.
(C) For taxable years beginning on or after January 1, 1995,
and before January 1, 1997, the individual must attain 60 years
of age before the close of the taxable year.
(D) For taxable years beginning on or after January 1, 1997,
and before January 1, 1999, the individual must attain 61 years
of age before the close of the taxable year.
(E) For taxable years beginning on or after January 1, 1999,
the individual must attain 62 years of age before the close of
the taxable year.
(b) 'Household income' has that meaning given in ORS 310.630
except that 'household income' shall not include social security
benefits received by the taxpayer or the spouse of the taxpayer.
(c) 'Net pension income' means:
(A) For eligible individuals filing a joint return, the lesser
of the pension income of the eligible individuals received during
the taxable year or the excess, if any, of $15,000 over the sum
of the following amounts:
(i) Any social security benefits received by the eligible
individual, or by the spouse of the individual, during the
taxable year; and
(ii) The excess, if any, of household income over $30,000.
(B) For an eligible individual filing a return other than a
joint return, the lesser of the pension income of the eligible
individual received during the taxable year or the excess, if
any, of $7,500 over the sum of the following amounts:
(i) Any social security benefits received by the eligible
individual during the taxable year; and
(ii) The excess, if any, of household income over $15,000.
(d) { + Except as provided in paragraph (e) of this
subsection, + } ' pension income' means income included in
federal taxable income from:
(A) Distributions from or pursuant to an employee pension
benefit plan, as defined in section 3(2) of the Employee
Retirement Income Security Act of 1974, which satisfies the
requirements of section 401 of the Internal Revenue Code;
(B) Distributions from or pursuant to a public retirement
system of this state or a political subdivision of this state, or
a public retirement system created by an Act of this state or a
political subdivision of this state, or the public retirement
system of any other state or local government;
(C) Distributions from or pursuant to a federal retirement
system created by the Federal Government for any officer or
employee of the United States, including any person retired from
service in the United States Civil Service, the Armed Forces of
the United States or any agency or subdivision thereof;
(D) Distributions or withdrawals from or pursuant to an
eligible deferred compensation plan which satisfies the
requirements of section 457 of the Internal Revenue Code;
(E) Distributions or withdrawals from or pursuant to an
individual retirement account, annuity or trust or simplified
employee pension which satisfies the requirements of section 408
of the Internal Revenue Code; and
(F) Distributions or withdrawals from or pursuant to an
employee annuity, including custodial accounts treated as
annuities, subject to section 403 (a) or (b) of the Internal
Revenue Code.
{ + (e) 'Pension income' does not include any amounts that
are subtracted from federal taxable income for the purpose of
computing Oregon income tax under the provisions of ORS 316.680
(1)(f) or (g). + }
{ - (e) - } { + (f) + } 'Social security benefits' means
social security benefits, as defined in section 86 of the
Internal Revenue Code (Title II social security or tier 1
railroad retirement benefits).
(3) A nonresident eligible individual shall be allowed the
credit computed in the same manner and subject to the same
limitations as the credit allowed a resident by subsection (1) of
this section. However, the credit shall be allowed only in that
proportion that the eligible individual's pension income included
in federal adjusted gross income from Oregon sources bears to the
eligible individual's pension income included in federal adjusted
gross income from all sources.
(4) If a change in the taxable year of the eligible individual
occurs as described in ORS 314.085, or if the department
terminates the tax year of the eligible individual under ORS
314.440, the credit allowed by this section shall be prorated or
computed in a manner consistent with ORS 316.085.
(5) If a change in the status of the eligible individual from
resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a
manner consistent with subsection (3) of this section.
(6) For purposes of this section, 'federal adjusted gross
income' is as described in ORS 316.013.
SECTION 4. { + The amendments to ORS 237.201, 316.157 and
316.680 by sections 1, 2 and 3 of this Act apply only to taxable
years beginning on or after January 1, 1991. + }
SECTION 5. { + Section 6 of this Act is added to and made a
part of ORS 237.199 to 237.291. + }
SECTION 6. { + (1) The increased benefits provided in ORS
237.208 and the amendments to ORS 237.233 by section 5, chapter
796, Oregon Laws 1991, are payable only to members of the Public
Employes' Retirement System who have some credit in the system
attributable to service performed for a public employer on or
after September 29, 1991. Within 30 days after the effective date
of this 1995 Act, the Public Employes' Retirement Board shall
recalculate the benefits payable to any member of the system who
received an increased benefit under the provisions of ORS 237.208
or the amendments to ORS 237.233 by section 5, chapter 796,
Oregon Laws 1991, before the effective date of this 1995 Act and
who had no credit in the system attributable to service performed
for a participating public employer on or after September 29,
1991, and shall reduce the benefit payable to the amount the
member would have received if the provisions of ORS 237.208 or
the amendments to ORS 237.233 by section 5, chapter 796, Oregon
Laws 1991, had not applied to the member.
(2) Within 30 days after the effective date of this 1995 Act,
the Public Employes' Retirement Board shall recalculate the
benefits payable to any member of the system who received an
increased benefit under the provisions of ORS 237.209 and 237.230
by reason of the amendments to ORS 237.209 and 237.230 by
sections 3 and 4, chapter 796, Oregon Laws 1991, or by reason of
+ } { + section 14, chapter 796, Oregon Laws 1991, + } { +
or section 26, chapter 815, Oregon Laws 1991, and shall reduce
the benefit payable to the amount the member would have received
if ORS 237.209 and 237.230 had not been amended by sections 3 and
4, chapter 796, Oregon Laws 1991, or if section 14, chapter 796,
Oregon Laws 1991, and section 26, chapter 815, Oregon Laws 1991,
had not become law.
(3) The increased benefits provided by section 7, chapter 796,
Oregon Laws 1991, are payable only to judges and surviving
spouses of judges who have some credit in the system attributable
to service performed for a public employer on or after September
29, 1991. Within 30 days after the effective date of this 1995
Act, the Public Employes' Retirement Board shall recalculate the
benefits payable to any judge or surviving spouse of a judge who
received an increased benefit under the provisions of section 7,
chapter 796, Oregon Laws 1991, before the effective date of this
1995 Act and who had no credit in the system attributable to
service performed for a participating public employer on or after
September 29, 1991, and shall reduce the benefit payable to the
amount the judge or surviving spouse of the judge would have
received if the provisions of section 7, chapter 796, Oregon Laws
1991, had not applied to the judge or surviving spouse of the
judge.
(4) The increased benefits provided in ORS 237.208 and the
amendments to ORS 237.233 by section 5, chapter 796, Oregon Laws
1991, are not payable to a person who is first employed by a
participating public employer on or after the effective date of
this 1995 Act.
(5) For the purposes of subsection (4) of this section, a
person is first employed by a participating public employer
before the effective date of this 1995 Act if:
(a) The person is a member of the system on the date that the
person begins employment with a participating public employer on
or after the effective date of this 1995 Act; or
(b) The person performed any period of service for a
participating public employer before the effective date of this
1995 Act that is credited to the six-month period of employment
required of an employee under ORS 237.011 before an employee may
become a member of the system.
(6) For the purposes of subsection (4) of this section, a
person is first employed by a participating public employer on or
after the effective date of this 1995 Act if the person separated
from all service entitling the employee to membership in the
system before the effective date of this 1995 Act and withdrew
the amount credited to the account of the employee in the fund,
and is not again employed by a participating public employer
until after the effective date of this 1995 Act, even if the
credit for service that was forfeited is subsequently restored to
the employee under the provisions of ORS 237.108 or 237.111. + }
SECTION 7. { + The increased benefits mandated in ORS 237.635
are payable only to police officers and fire fighters who have
some creditable service with a public employer that was performed
on or after September 29, 1991. Any public employer that was
required to pay increased benefits under the provisions of ORS
237.635 shall recalculate and reduce the benefits payable to a
retired police officer or fire fighter who is receiving a
retirement benefit from the public employer and who performed no
service for the public employer on or after September 29,
1991. + }
SECTION 8. ORS 237.209 is amended to read:
237.209. (1) In addition to any increase under ORS 237.060,
first effective for the month of August 1981, payable September
1, 1981, the monthly retirement allowance payable to or on
account of any person who has retired as a member of the Public
Employes' Retirement System shall be increased by a percentage
based on the calendar year in which the person retired, as set
forth in the following table:
_________________________________________________________________
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Calendar Year Percentage
of Retirement Increase
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
1980 4.00
1979 4.32
1978 4.76
1977 4.44
1976 4.72
1975 4.92
1974 5.28
1973 5.92
1972 6.20
1971 6.36
1970 6.60
1969 6.88
1968 7.20
1967 7.36
1966 7.56
1965 7.88
1964 8.12
1963 8.32
1962 8.56
1961 8.64
1960 8.76
1959 8.96
1958 9.08
1957 9.28
1956 9.68
1955 10.00
1954 10.04
1953 10.16
1952 10.56
1951 10.64
1950 or any prev11.40year
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
_________________________________________________________________
(2) In addition to any increase under ORS 237.060 and
subsection (1) of this section, first effective for the month of
July 1982, payable August 1, 1982, the monthly retirement
allowance payable to or on account of any person who has retired
as a member of the Public Employes' Retirement System shall be
increased by a percentage based on the calendar year in which the
person retired. The percentage shall be four percent in respect
to a person who retired in the calendar year 1981. The percentage
in respect to a person who retired in a calendar year previous to
the calendar year 1981 shall be the applicable percentage in the
table set forth in subsection (1) of this section.
(3) In addition to any increase under ORS 237.060, first
effective for the month of July 1985, payable August 1, 1985, the
monthly retirement allowance payable to or on account of any
person who has retired as a member of the Public Employes'
Retirement System shall be increased by a percentage based on the
calendar year in which the person retired, as set forth in the
following table:
_________________________________________________________________
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Calendar Year Percentage
of Retirement Increase
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
1983 3.00
1982 3.01
1981 3.09
1980 3.24
1979 3.48
1978 3.80
1977 3.57
1976 3.77
1975 3.92
1974 4.17
1973 4.63
1972 4.82
1971 4.93
1970 5.09
1969 5.28
1968 5.49
1967 5.60
1966 5.73
1965 5.94
1964 6.09
1963 6.22
1962 6.37
1961 6.42
1960 6.50
1959 6.62
1958 6.70
1957 6.82
1956 7.06
1955 7.25
1954 or any previ7.28year
_________________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
(4) In addition to any increase under ORS 237.060 and
subsection (3) of this section, first effective for the month of
July 1986, payable August 1, 1986, the monthly retirement
allowance payable to or on account of any person who has retired
as a member of the Public Employes' Retirement System shall be
increased by a percentage based on the calendar year in which the
person retired. The percentage shall be three percent in respect
to a person who retired in the calendar year 1984. The percentage
in respect to a person who retired in a calendar year previous to
the calendar year 1984 shall be the applicable percentage in the
table set forth in subsection (3) of this section.
(5) In addition to any increase under ORS 237.060, first
effective for the month of July 1989, payable August 1, 1989, the
monthly retirement allowance payable to or on account of any
person who has retired as a member of the Public Employes'
Retirement System shall be increased by a percentage based on the
calendar year in which the person retired, as set forth in the
following table:
_________________________________________________________________
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Calendar Year Percentage
of Retirement Increase
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
1988 0
1987 0
1986 0
1985 0
1984 0
1983 0
1982 0
1981 0
1980 3
1979 11
1978 16
1977 3
1976 7
1975 15
1974 25
1973 14
1972 15
1971 0
1970 0
1969 4
1968 7
1967 0
1966 0
1965 0
1964 0
1963 1
1962 1
1961 2
1960 3
1959 3
1958 5
1957 9
1956 9
1955 7
1954 8
1953 8
1952 10
1951 19
1950 or any previou18year
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
_________________________________________________________________
{ - (6) In addition to any increase under ORS 237.060, first
effective for the month of December 1990, payable January 1,
1991, the monthly retirement allowance payable to or on account
of any person who has retired as a member of the Public Employes'
Retirement System shall be increased by the following
percentages: - }
{ - (a) If the member was serving as other than a police
officer or fire fighter at the time of retirement, the percentage
increase shall be: - }
{ - (A) For a member with a combined total of 10 or more
years of creditable service in the system and prior service
credit under ORS 237.081 but less than a combined total of 20
years, one percent. - }
{ - (B) For a member with a combined total of 20 or more
years of creditable service in the system and prior service
credit under ORS 237.081 but less than a combined total of 25
years, two percent. - }
{ - (C) For a member with a combined total of 25 or more
years of creditable service in the system and prior service
credit under ORS 237.081 but less than a combined total of 30
years, three percent. - }
{ - (D) For a member with a combined total of 30 or more
years of creditable service in the system and prior service
credit under ORS 237.081, four percent. - }
{ - (b) If the member was serving as a police officer or fire
fighter at the time of retirement, the percentage increase shall
be: - }
{ - (A) For a member with a combined total of 10 or more
years of creditable service in the system and prior service
credit under ORS 237.081 but less than a combined total of 20
years, one percent. - }
{ - (B) For a member with a combined total of 20 or more
years of creditable service in the system and prior service
credit under ORS 237.081 but less than a combined total of 25
years, two and one-half percent. - }
{ - (C) For a member with a combined total of 25 or more
years of creditable service in the system and prior service
credit under ORS 237.081, four percent. - }
{ - (c) The monthly retirement allowance payable to or on
account of a member with less than a combined total of 10 years
of creditable service in the system and prior service credit
under ORS 237.081 at the time of retirement shall not be
increased under the provisions of this subsection. - }
{ - (7) The increased allowance provided in subsection (6) of
this section shall be funded by employer contributions. - }
SECTION 9. ORS 237.230 is amended to read:
237.230. (1) Every monthly retirement allowance or pension
payable to a judge member or surviving spouse of a judge member
under ORS 237.211 to 237.233 shall be adjusted annually to
reflect the percentage increase or decrease in the cost of living
as provided in ORS 237.060.
(2) ORS 237.209 (4) { - to (7) - } { + and (5) + } apply in
respect to a judge member who retired in the calendar year 1984
or any calendar year thereafter as provided in ORS 237.209 (4)
{ + and (5) + } { - to (7) - } , and for that purpose the
monthly retirement referred to in ORS 237.209 (4) { - to
(7) - } { + and (5) + } shall be the monthly retirement
allowance payable to a judge member or the monthly pension
payable to the surviving spouse of a judge member under ORS
237.227 (3)(a).
SECTION 10. { + (1) On or before January 1, 1996, the
Department of Revenue shall calculate and mail checks for the
amount of any refund payable to a taxpayer for taxable years
beginning on or after January 1, 1991, that results from section
4 of this Act and the amendments to ORS 237.201, 316.157 and
316.680 by sections 1, 2 and 3 of this Act.
(2) In calculating a refund under this section, the Department
of Revenue shall reduce the amount of the refund to a retired
member of the Public Employes' Retirement System who has no
credit in the system attributable to service performed for a
public employer on or after September 29, 1991, by the amount of
any benefits paid to the retired member under the provisions of
chapter 796, Oregon Laws 1991.
(3) In calculating a refund under this section, the Department
of Revenue shall reduce the amount of the refund to retired
police officers and fire fighters who have no creditable service
with a public employer that was performed on or after September
29, 1991, by the amount of any benefits paid to the retired
police officer or fire fighter under the provisions of ORS
237.635.
(4) In calculating a refund under this section, the Department
of Revenue shall reduce the amount of the refund to retired
judges who have no creditable service with a public employer that
was performed on or after September 29, 1991, by the amount of
any benefits paid to the retired judge under the provisions of
section 26, chapter 815, Oregon Laws 1991.
(5) In addition to the amount of the refund required by this
section, the Department of Revenue shall calculate and add
interest to the amount of the check mailed under this section.
Interest on the refund shall be computed at the rate of ___
percent and shall be calculated from the time the refunded
amounts were paid or withheld. + }
SECTION 11. Section 14, chapter 796, Oregon Laws 1991, and
section 26, chapter 815, Oregon Laws 1991, are repealed.
SECTION 12. Section 12, chapter 796, Oregon Laws 1991, as
amended by section 28, chapter 815, Oregon Laws 1991, and section
176, chapter 18, Oregon Laws 1993, is amended to read:
{ + Sec. 12. + } (1) Notwithstanding any other provision of
chapter 796, Oregon Laws 1991, the increased benefits payable
under ORS 237.209, 237.230 and 237.233, as amended by sections 3,
4 and 5, chapter 796, Oregon Laws 1991, { - and section 14,
chapter 796, Oregon Laws 1991, - } and ORS 237.208 shall not be
paid in any tax year in which the retirement benefits payable
under the Public Employes' Retirement System are exempt from
Oregon personal income taxation. In the event increased benefits
under chapter 796, Oregon Laws 1991, are paid in a tax year in
which the retirement benefits payable under the system are exempt
from Oregon personal income taxation, the benefits shall not be
recoverable by the system, but the Public Employes' Retirement
Board shall insure that no additional amounts are paid under the
provisions of chapter 796, Oregon Laws 1991.
(2) Notwithstanding any other provision of chapter 796, Oregon
Laws 1991, the increased benefits payable { - under section 26,
chapter 815, Oregon Laws 1991, and - } section 7, chapter 796,
Oregon Laws 1991, as amended by section 24, chapter 815, Oregon
Laws 1991, shall not be paid in any tax year in which the
retirement benefits payable out of the Judges' Retirement Fund
are exempt from Oregon personal income taxation. In the event
increased benefits under chapter 796, Oregon Laws 1991, are paid
in a tax year in which the retirement benefits payable out of the
fund are exempt from Oregon personal income taxation, the
benefits shall not be recoverable by the fund, but the Public
Employes' Retirement Board shall insure that no additional
amounts are paid under the provisions of chapter 796, Oregon Laws
1991.
(3) Notwithstanding any other provision of chapter 796, Oregon
Laws 1991, the increased benefits payable under ORS 237.635 shall
not be paid in any tax year in which the retirement benefits
payable by public employers that provide retirement benefits to
its police officers and fire fighters pursuant to the provisions
of ORS 237.620 (4) are exempt from Oregon personal income
taxation. In the event increased benefits under chapter 796,
Oregon Laws 1991, are paid in a tax year in which the retirement
benefits payable out of the fund are exempt from Oregon personal
income taxation, the benefits shall not be recoverable, but the
public employer shall insure that no additional amounts are paid
under the provisions of chapter 796, Oregon Laws 1991.
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