Bill would speed contested‑case referrals, adjust disability rules for police and firefighters in PERS

The House Committee on Labor and Workplace Standards on April 28 heard testimony on Senate Bill 588 A, legislation sponsored in the Senate to alter Public Employees Retirement System (PERS) procedures and standards for police officers and firefighters seeking duty‑related disability benefits.

Senator Mark Meek, sponsor of the measure, told the committee SB 588 A is intended to “keep our promise to Oregon’s police officers and firefighters” by bringing timelier and fairer processing to disability claims. Meek said the measure is the product of stakeholder work with PERS, firefighters and police associations, and pushed to resolve long delays and denials affecting members with serious duty‑related injuries, including post‑traumatic stress disorder.

Heather Case, senior policy advisor at PERS, told the committee PERS takes no position on the bill but outlined the agency’s view of its effects. Key provisions described in the bill and by PERS staff include: - Referral timelines: Cases where a police officer or firefighter requests a contested‑case hearing must be referred to the Office of Administrative Hearings within 180 days of the request, with an option for a 360‑day referral if the member requests an extension. PERS must also refer currently backlogged requests within 360 days after the bill’s effective date. PERS staff said the bill has an emergency clause and would be effective on passage. - Eligibility standard: The bill changes the disability definition for police and fire members so they are considered disabled if they can no longer perform the work they were performing at the time they became disabled (rather than inability to perform any work for which they are qualified). - Irregular income safe harbor: For OPSRP (police and fire members under the Oregon Public Service Retirement Plan), irregular or unpredictable income does not cause ineligibility unless it exceeds 10% of the member’s pre‑disability last monthly salary. PERS staff said the change is intended to allow small volunteer stipends or hobby earnings without terminating benefits.

Case said appeals staff approved 43 of 119 disability contested‑case hearing requests received between January 2019 and December 2024, and reiterated the agency’s offer to help implement reporting changes for participating employers.

Why it matters Supporters say the bill shortens wait times, brings definitions in line with contemporary medical understanding of conditions such as PTSD, and prevents small irregular income sources from causing benefit termination. PERS staff noted the change affects tier 1, tier 2 and OPSRP police and fire members and includes an applicability clause for open applications that have not yet been referred to a hearing.

Next steps The committee closed the public hearing and did not record committee action on the bill during this session; sponsor and PERS staff signaled continued stakeholder work on implementation.