Oregon Code § ORS 238.340

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(1) Except as provided in subsection (2) of this section, when a member retired because of disability is determined by the Public Employees Retirement Board to be not incapacitated to the extent that the member is disabled from the performance of any work for which the member is qualified, the disability retirement shall be canceled forthwith, the member shall be eligible for reemployment and the member account of the member shall be credited with the amount that stood to the credit in the member account of the member in the fund at the time of retirement for disability. Any such person who for any reason is not reinstated in the service of an employer participating in the system shall receive separation benefits or service retirement benefits as provided in this chapter.
(2) When a member retired because of disability who was employed as a police officer or firefighter at the time the member became disabled is determined by the Public Employees Retirement Board to be not incapacitated to the extent that the member is disabled from the performance of the work the member performed at the time the member became disabled, the disability retirement shall be canceled forthwith, the member shall be eligible for reemployment and the member account of the member shall be credited with the amount that stood to the credit in the member account of the member in the fund at the time of retirement for disability. Any such person who for any reason is not reinstated in the service of an employer participating in the system shall receive separation benefits or service retirement benefits as provided in this chapter. [Formerly 237.195; 1997 c.53 1; 2001 c.945 53; 2025 c.168 7]

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