Bill > HB3363

This bill modifies how overtime is calculated for the Oregon Public Service Retirement Plan (OPSRP), specifically changing how overtime hours are factored into an employee's final average salary calculation. Under the new law, participating public employers will be required to calculate an overtime cap for each class of employees annually, based on the actual average overtime hours worked in the previous calendar year. If the average overtime hours exceed 105% of the existing cap, the new average will become the new cap. The Oregon Department of Administrative Services will calculate these caps separately for each state agency and potentially create different caps based on geographic placement. For retirement benefit calculations, any overtime hours exceeding this calculated cap will not be included in an employee's final average salary. The first calculation of these new overtime caps must be completed by January 31, 2026, and will apply to the 2026 calendar year. This change aims to provide a more dynamic and precise method of determining overtime limits for retirement benefit calculations, ensuring that extraordinary or unusual overtime periods do not disproportionately inflate an employee's retirement benefits.

Labor and Employment

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB3363