The Senate Committee on Labor and Business adopted a dash 1 amendment to Senate Bill 847 on March 11 that changes the RHIA (retirement health insurance account) subsidy formula and makes members of the Oregon Public Service Retirement Plan eligible to receive retiree health insurance premium account and retirement health insurance account subsidies under PERS rules.

Committee staff explained the dash 1 amendment alters section 1 of the bill to change the calculation of the retirement health insurance account subsidy to an amount equal to $100 or the total monthly cost of the coverage, whichever is less, and leaves section 2 in place, which expands eligibility to OPSRP members.

Staff also told the committee an indeterminate fiscal impact analysis had been posted minutes earlier and that the measure’s fiscal consequences depend on how many retired members would be eligible for the higher subsidy, the choices OPSRP members might make about enrollment in PERS health programs, and account investment returns that affect employer contribution rates. PERS staff noted employer contribution rates for the 2025–27 biennium are already adopted and the measure is expected to have no fiscal impact for that biennium; employer rates for 2027–29 may increase depending on the measure’s implementation and actuarial changes.

Vice Chair Bonham moved adoption of the dash 1 amendment; there was no objection and the amendment was adopted. Vice Chair Bonham then moved the bill, as amended, to the floor with a due-pass recommendation; the motion passed with no objection. Senator Taylor volunteered to carry the bill to the floor.

Ending: The committee adopted the amendment and forwarded SB 847 as amended to the Senate floor with a due-pass recommendation; the fiscal impact beyond the current biennium remains indeterminate depending on uptake and actuarial assumptions.