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.