Relating to the application of overtime under the Oregon Public Service Retirement Plan.

SB 475 modifies how overtime pay is counted toward retirement benefits for Oregon public employees under the Public Service Retirement Plan. It establishes a new annual overtime cap calculation method: public employers must calculate actual average overtime hours from the previous year, and if that exceeds 105% of the current cap, the higher amount becomes the new cap for the coming year. This change directly affects public employees whose retirement benefits are calculated using "final average salary," excluding overtime hours exceeding this new cap from pension calculations. The bill requires employers to maintain records of these caps and apply the first new caps starting in 2026.