Bill > SB475

This bill modifies how overtime is calculated and used in determining the final average salary for members of the Oregon Public Service Retirement Plan (OPSRP). Currently, salary calculations exclude overtime hours that exceed a predetermined average for a specific employee class. The bill replaces this fixed overtime average with a more dynamic calculation method where participating public employers will annually calculate the actual average overtime hours for each employee class. If the average overtime hours exceed 105% of the existing overtime cap, the new average will become the new cap for the following calendar year. The Oregon Department of Administrative Services will calculate these overtime caps separately for each state agency and consider geographic variations among employees. Participating public employers must maintain records of these overtime caps and provide them to the Public Employees Retirement Board upon request. The first calculations of these new overtime caps must be completed by January 31, 2026, and will apply to the 2026 calendar year. This approach aims to create a more precise and adaptive method of accounting for overtime in pension benefit calculations, potentially reflecting more accurately the actual work patterns of different employee classes across various geographical regions.

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https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB475