Allen v. County of Jackson County

82 P.3d 628, 191 Or. App. 185, 2003 Ore. App. LEXIS 1725
CourtCourt of Appeals of Oregon
DecidedDecember 10, 2003
Docket97-009-L1; A115689
StatusPublished
Cited by4 cases

This text of 82 P.3d 628 (Allen v. County of Jackson County) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allen v. County of Jackson County, 82 P.3d 628, 191 Or. App. 185, 2003 Ore. App. LEXIS 1725 (Or. Ct. App. 2003).

Opinion

*188 BREWER, J.

This is the second appeal in an action brought by several employees of the Jackson County sheriffs office alleging claims against defendant Jackson County for breach of contract and wrongful deduction from wages. In the first appeal, we reversed a summary judgment and remanded. Allen v. County of Jackson, 169 Or App 116, 118, 7 P3d 739 (1996) (Allen I). Plaintiffs now appeal the judgment that the trial court entered on remand, assigning error to the trial court’s denial of their motions for judgment on the pleadings and for a directed verdict on the wage claim. 1 We review the challenged decisions for errors of law. GPL Treatment, Ltd. v. Louisiana-Pacific Corp., 323 Or 116, 118, 914 P2d 682 (1996) (stating standard of review for denial of motion for directed verdict); Withers v. State of Oregon, 133 Or App 377, 382, 891 P2d 675, rev den, 321 Or 284 (1995) (stating standard of review for judgment on the pleadings). For the reasons that follow, we affirm.

The material facts are as follows: Some of defendant’s employees, including some of the plaintiffs in this case, are participants in the Public Employees Retirement System (PERS). Other employees, including other plaintiffs, are participants in an alternative retirement plan that defendant provided to its employees. Sometime after 1979, defendant began paying its employees’ retirement contributions. The practice began after the legislature enacted statutory language relating to PERS that, in substance, is the following part of ORS 238.205 (2001):

“Notwithstanding any other provision of this chapter, and subject to the provisions of this section, a public employer participating in the system may agree, by a written employment policy or agreement in effect on or after July 1, 1979, to ‘pick-up,’ assume or pay the full amount of *189 contributions to the fund required of all or less than all active members of the system employed by the employer.”

In November 1994, the voters of the State of Oregon enacted Ballot Measure 8, which amended the Oregon Constitution to require that public employees contribute six percent of their compensation to their retirement accounts. Measure 8 also prohibited public employers from paying their employees’ contributions.

In December 1994, defendant adopted an ordinance that provided that it would no longer pay plaintiffs’ retirement contributions and gave plaintiffs a 5.7 percent pay increase. The ordinance provided, in part:

“WHEREAS, Measure 8 was adopted by the voters in the November 8, 1994, general election;
“WHEREAS, Measure 8 requires employees of Jackson County who are members of PERS or Jackson County’s Standard Insurance Company retirement plan for the Sheriffs Office (the Standard Insurance Plan) to contribute to the plan six percent of their salary;
“WHEREAS, Measure 8 prohibits Jackson County from contracting or agreeing on or after January 1, 1995, to reheve its employees of their contribution obligation under Measure 8;
“WHEREAS, employee contributions to PERS or the Standard Insurance Plan would result in additional federal and state income tax liability to employees;
“WHEREAS, such additional tax liability would be avoided if Jackson County ‘picks up’ such employee contributions, as that term is used in Internal Revenue Code section 414(h)(2); and
“WHEREAS, by Board Order Number 416-94, dated September 29, 1994, the Board of Commissioners indicated an intent to increase salary ranges for non-union employees at the discretion of the county;
“Now, therefore,
“The Board of County Commissioners of Jackson County ORDERS that:
*190 “1. The salary ranges for all non-union county employees shall immediately be increased by 5.7%.
“2. The County Administrator is authorized to raise the salaries of non-union employees by 5.7% according to the existing management compensation plan as that authority has been previously delegated to the Administrator by Jackson County Code section 216.09. Such raise shall be retroactive to November 28,1994.
“3. Effective for salary earned on or after November 28,1994, the County will cease making its current six percent pick-up contributions under ORS 237.075 to PERS.
* * * *
“5. Employees shall contribute six percent of their salary to PERS and the Standard Insurance Plan as follows:
“a. Each employee covered by the OPEU agreement who is or becomes a member of PERS, and each non-union employee who is or becomes a member of the Standard Insurance Plan or PERS, shall contribute six percent of the employee’s salary to such retirement plan, effective for salary earned on or after November 28, 1994, or such later date as the employee becomes a member of such retirement plan.
“b. Each employee covered by the JCSEA agreement who is or becomes a member of the Standard Insurance Plan or PERS shall contribute six percent of the employee’s salary to such retirement plan, effective for salary earned on or after the date established by agreement between Jackson County and JCSEA or such later date as the employee becomes a member of such retirement plan. Such agreements may treat sworn and unsworn employees differently, including the establishment of different effective dates for sworn and unsworn employees.
“6. Such contributions, although designated as employee contributions, will be paid by Jackson County to such retirement plans in lieu of such contributions by the employees. Employees do not have the option of choosing to receive the contributed amounts directly and paying the *191 employee contribution directly instead of having the contributed amounts paid by Jackson County to such retirement plans. Such contributions are deemed to be ‘picked up’ for purposes of Internal Revenue Code section 414(h)(2) (‘pick-up contributions’). This section 6 is effective for salary earned on or after November 28, 1994, except that for non-union employees who are members of the Standard Insurance Plan, it is effective for salary earned on or after December 12, 1994.
“7. Employees’ reported compensation on the W-2 form for tax purposes will be reduced by the amount of such pick-up contributions.
“8. Such pick-up contributions will be made on a salary reduction basis, so that each employee’s salary remaining after the pick-up contribution will be as reduced by the amount of the pick-up contribution.”

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Related

Kramer v. Conatser
341 Or. App. 568 (Court of Appeals of Oregon, 2025)
Allen v. County of Jackson County
129 P.3d 694 (Oregon Supreme Court, 2006)
Olson v. Eclectic Institute, Inc.
119 P.3d 791 (Court of Appeals of Oregon, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
82 P.3d 628, 191 Or. App. 185, 2003 Ore. App. LEXIS 1725, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allen-v-county-of-jackson-county-orctapp-2003.