Opinion ID: 835784
Heading Depth: 1
Heading Rank: 7

Heading: annual crediting of members' regular accounts at assumed earnings rate

Text: The majority declares that Oregon Laws 2003, chapter 67, sections 5, 6, 7, and 8, as amended by Oregon Laws 2003, chapter 625, sections 10, 11, and 12, are void, because those provisions impair the state's contractual retirement obligation with its employees in violation of Article I, section 21, of the Oregon Constitution. That section provides, in part: No    law impairing the obligation of contracts shall ever be passed   . The cited provisions of the 2003 PERS legislation concern the legislature's cancellation of annual crediting of Tier One member regular account balances at the assumed earnings rate. I concur with the majority's conclusion in that respect. I also concur with the majority that the legislature's modification of the statutory scheme for charging public employer accounts when credited income exceeds earnings for more than five years (the call) does not impair the statutory contract. The underlying contractual obligation to credit member regular accounts remains with the state regardless of the state's accounting arrangements with public employers regarding the funding of member account balances.