HB 3363
Modifies how the overtime cap is calculated for use in calculating the final average salary of members of the Oregon Public Service Retirement Plan.
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Support
100%
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0%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill modifies how overtime hours are considered when calculating a public employee’s final average salary for pension benefits under the Oregon Public Service Retirement Plan. Specifically, it establishes a cap on overtime hours that can be included in the final average salary calculation. The Public Employees Retirement Board will now calculate this cap based on the average overtime hours worked by employees in each class, with adjustments to account for potential increases in overtime and to ensure fair calculations across different agencies and geographic locations.
Key provisions
- Establishes an overtime cap for calculating final average salary in the Oregon Public Service Retirement Plan.
- Requires public employers to calculate average overtime hours annually.
- The Public Employees Retirement Board will determine the overtime cap for each class of employees.
- The overtime cap is calculated based on 105% of the previous year’s overtime hours, with adjustments for exceeding that threshold.
- Salary increases for insurance coverage are excluded from the final average salary calculation.
- The Oregon Department of Administrative Services will calculate overtime caps separately for each state agency and based on employee geographic placement.
- Participating public employers must maintain and provide overtime cap records to the Public Employees Retirement Board.
- The first calculations of overtime caps must be completed by January 31, 2026, and apply to calendar year 2026.
Who is affected
Sponsors
Official sponsors from legislative records.
Primary sponsors
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Arguments in favor
Reasons to support this legislation.
Supporters of HB 3363 advocate for clarifying the existing Oregon statute to create a PERS cap that reflects a reasonable expectation of overtime hours served, ensuring fair compensation and retirement security for public workers. Many the need for full benefits and pay for state behavioral health workers who work 24/7, citing excessive mandatory overtime as a major concern due to its impact on their well-being, job safety, and personal lives. Testifiers share personal anecdotes of the emotional toll of excessive overtime, including disciplinary letters issued for refusing overtime, and highlight the need for adequate staffing levels to ensure quality care and prevent dysregulation in individuals with high acuity levels. Overall, supporters argue that full benefits and pay for state behavioral health workers are essential to support vulnerable individuals in the state while also promoting work-life balance and reducing turnover rates.
Source: Testimony Summaries
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