OPRI Introduces House Bill 2867 for Income Tax Remedy Payment Fix

OPRI is focused on protecting the hard-earned benefits of
PERS retirees during the 2021 Legislative Session with the introduction of a
bill that would more quickly reinstate Tax Remedy Payments for retirees who are
either unable to timely confirm their Oregon residency or who establish Oregon
residency during the year.

HB 2867 is introduced by Paul Evans (D-Monmouth) at the
behest of one of his constituents who was dealing with severe spousal health
issues and did not establish her residency as required prior to the calendar
year.   As a result, her Tax Remedy
Payments were withheld.  The withholding
of Tax Remedy Payments can severely impact retirees on fixed incomes.

Currently, PERS retirees can only establish residency to
receive Tax Remedy Payments at the beginning of the year. If for any reason a
member does not establish residency at that time, payments are reduced for a
full year, until residency is established the following year. HB 2867 would
allow PERS retirees to make adjustments quarterly rather than only once a year,
helping PERS retirees maintain their full benefits.

OPRI thanks Representative Paul Evans for listening and
agreeing to introduce this important legislation.

This is the second time OPRI has introduced a bill that
would address the Tax Remedy Payment. During the 2018 short legislative session,
OPRI introduced HB 4112 and testified before the House Business and Labor
Committee in support of the concept. HB 4112 was ultimately held up in
committee and did not advance in the 2018 short session.

Although the PERS Agency opposes our bill due to the administrative cost, OPRI doesn’t believe cost savings should come from shorting fixed-income retirees the Tax Remedy Payments that are due to them.

If you have any questions or would like to share your story of how you were impacted by the Tax Remedy Payment, reach out to OPRI at (503) 363-7084 or info@opri.org.