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House Bill 4045: All about the ‘Hazardous Position’ classification for OPSRP

House Bill (HB) 4045, also known as the Public Safety Workforce Stabilization Act, was passed by the Oregon Legislature in 2024. HB 4045 will go into effect on January 1, 2025, and trigger PERS to begin work to create a new “Hazardous Position” classification for Oregon Public Service Retirement Plan (OPSRP) members, among other changes. This new member classification will be used starting January 1, 2030.

Once in use, the Hazardous Position classification will join the two other member classifications that exist for OPSRP members. They are:

  • General Service
  • Police and Firefighter (P&F)

Read the following sections for the reasons for the change, whether the classification will apply to you, and what PERS will be working on up to 2030.

HB 4045 defines a hazardous position as one that:

  • Requires the person holding the position to work with or manage emergency or traumatic events in the regular course of work.

    OR

  • Carries a high risk of physical harm.

HB 4045 also added two groups of employees whose jobs fit within the Hazardous Position classification. They are:

  • Oregon State Hospital employees who have direct contact with patients.

    AND

  • 911 telecommunicators, as defined in Oregon Revised Statutes (ORS) 181A.355.

Employers will bear the responsibility of reporting to PERS whether you work a job that qualifies for the Hazardous Position classification. For example, if you work for Oregon State Hospital (OSH), OSH will decide whether you have “direct contact with patients” and what “direct contact” means. PERS will not make these determinations for employers.

In the future, the Legislature may decide whether to add more groups of employees to the Hazardous Position classification. PERS does not decide whether a position meets the definition of a hazardous position and whether it should be added to the classification. It is the Oregon Legislature’s role to make such decisions.

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The Hazardous Position classification currently only includes two groups of employees:

  • Oregon State Hospital employees who have direct contact with patients.

    AND

  • 911 telecommunicators, as defined in Oregon Revised Statutes (ORS) 181A.355.

If the Oregon Legislature decides to add more groups to the classification, PERS will update information online accordingly.

Note: PERS cannot advise you whether or not your position should be classified as a hazardous position. Our member services representatives can only tell you which positions are currently in the Hazardous Position member classification per statute and whether your employer has reported you as being in a hazardous position.

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As an OPSRP member, you have two parts to your retirement: a pension and an Individual Account Program (IAP) account. (Also read about the Employee Pension Stability Account and how it relates to PERS pension benefits.)

PERS uses formulas to determine the pension benefits that OPSRP members receive in retirement.

For the time spent in a hazardous position, PERS will use the following pension benefit calculation once the Hazardous Position classification is fully implemented in 2030:

  • 1.8% x years of total retirement credit in a hazardous position x final average salary

Calculations for the Hazardous Position classification are similar to the Police and Firefighter classification in that they both use 1.8%. General Service uses 1.5% instead. (Read the “Effective dates and implementation” section for more information about calculations for hazardous positions between January 1, 2019, and January 1, 2030.)

The following table further compares the three member classification types:

Hazardous Position General Service Police and Firefighter
Normal retirement age 60
(or age 58 with 25 years of service) 		65
(or age 58 with 30 years of service) 		60*
(or age 53 with 25 years of service)
Early retirement age 55** 55** 50**
Additional notes about retirement The retirement credit in the last 60 months before you are eligible for a hazardous position retirement (whether early or normal age) must be classified as a hazardous position. — The retirement credit in the last 60 months before you are eligible for P&F retirement (whether early or normal age) must be classified as P&F.

*Effective January 1, 2025, normal retirement age for Police and Firefighter members will be age 55.

**General Service, Police and Firefighter, and Hazardous Position retirees who retire early will have their pension benefit reduced by a percentage based on actuarial data, which takes life expectancy into account. The reduction occurs because early retirees receive pension benefits over a longer period of time than those who retire at the normal age.


Examples

The following are example calculations, given two situations. These examples are general and may not apply to your situation.

Example 1 — Member worked only in a hazardous position

Final average salary: $3,750 per month
Retirement credit in a hazardous position: 25 years
Convert 1.8% for ease of multiplication: 1.8% ÷ 100% = 0.018
0.018 × 25 × $3,750 = $1,687.5 per month in pension income

Example 2 — Member worked in a general service position and then in a hazardous position

Final average salary: $3,750 per month
Retirement credit in a general service position: 15 years
Retirement credit in a hazardous position: 10 years
Use 1.5% for General Service: 1.5% ÷ 100% = 0.015
0.015 × 15 × $3,750 = $843.75
Use 1.8% for Hazardous Position: 1.8% ÷ 100% = 0.018
0.018 × 10 × $3,750 = $675
Combine General Service and Hazardous Position: $843.75 + $675 = $1,518.75 per month in pension income

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The Hazardous Position member classification will be fully implemented on January 1, 2030.

Prior to full implementation of HB 4045, members who work in jobs that will later become classified as hazardous positions may be able to apply the time they worked in those positions from January 1, 2019, onward toward the 60 months of retirement credit they need to establish retirement eligibility in a hazardous position, as long as the 60 months are not interrupted by work in a General Service position.

However, service time from January 1, 2019, through December 31, 2029, will not be eligible for the 1.8% multiplier that will be used in pension benefit calculations after implementation. (Read the “What benefits do Hazardous Position members receive?” section for more information about calculations.)

Instead, PERS will use the multiplier applicable to your classification during that time period. For example, if you are classified as General Service from January 1, 2019, through December 31, 2029, your multiplier for service time during that period will be 1.5%. If you continue serving in a hazardous position, only service time on or after January 1, 2030, will be multiplied by 1.8%.

Starting in 2026, PERS will begin working toward implementation. Continue to check the PERS website for updates, and sign up to receive PERS news and updates via email and text.

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