Subcommittee adopts amendment to require PERS notice to show overtime used in pension calculation

The General Government Subcommittee on Tuesday adopted a budget amendment to House Bill 2,728 and forwarded the bill to the full committee with a “pass” recommendation. The measure would require the Public Employees Retirement System (PERS) to show the use of overtime hours in members’ notice of entitlement calculations, effective Jan. 1, 2026, though PERS may act earlier.

The change aims to increase transparency in retirement estimates for state employees. LFO staff said the amendment provides a one-time other‑funds expenditure limitation of $499,986 and authorizes three limited‑duration positions totaling 2.63 full‑time equivalent to perform the manual calculations needed until the agency can automate the process. “It does not change benefits at all,” said LFO staff during the work session.

Committee members described why the change matters for some uniformed staff. Representative Tran said, “Transparency is good and we're taking care of our workforce,” and raised concerns about mandatory overtime and retention. Other members noted that corrections staff have been working large amounts of overtime—sometimes 80 to 100 hours a month—and that showing how overtime affects the final‑average‑salary calculation will clarify members’ expected retirement benefits.

The measure applies to tier 1, tier 2 and Oregon Public Service Retirement Plan (OPSRP) members, and it directs the PERS Board to modify the notice of entitlement letter to include overtime used in the final‑average‑salary computation. LFO staff emphasized the change is administrative: when a retiree requests a benefit estimate, staff will initially need to enter overtime hours manually on the form until the agency’s modernization program automates the calculation.

During the session, staff noted the fiscal note and revenue impact are available on OLIS. Susan Owen of AFSCME was on the line, the committee noted, if members wished additional information from labor representatives.

The subcommittee first approved the dash‑1 budget amendment by voice vote—“Any discussion, any objections? All right. It’s passed on.”—and then moved HB 2,728 as amended to the full committee with a pass recommendation. No roll‑call vote was recorded in the work session. The bill’s administrative costs may need extension into the 2027–29 biennium if automation is delayed.

The full committee will now receive the bill and the dash‑1 amendment for further consideration.