Oregon Public Employees Retirement System Chapter 459
Caption: New rule to implement
verification of retirement provisions of Senate Bill 897 (2010).
Order No.: PERS 11-2010
Filed with Sec. of
Certified to be
Rules Adopted: 459-005-0040
Subject: Senate Bill 897 (2010) requires PERS to verify certain
retirement data upon an eligible member’s request. Under the bill, PERS must
notify the member’s employers of the request and give those employers a
reasonable time to confirm or modify the data previously reported to PERS.
After this period has passed, the member’s employer may not later modify that
data. PERS will then produce a verification based on the reported data. With
some exceptions, PERS is restricted from using anything less than the amounts
in the verification to calculate the member’s service retirement benefit. The
proposed rule clarifies standards for implementation and administration of
verifications and incorporates several policy decisions necessary for
The rule includes
a process to request an extension of the 60-day period. An extension may be
granted by the Director or his designee upon an employer’s petition showing
good cause. The petition must be specific to an individual member, state the
duration and end date of the requested extension, and be received by PERS no
later than the 45th day after notice is issued to the employer. An employer may
request only one extension for any eligible member.
Staff feels the
extension provision provides sufficient flexibility for an employer to address
more complex records, especially when considered with other aspects of the
implementation plan that are designed to avoid PERS and employers receiving
disproportionate numbers of requests.
Rules Coordinator: Daniel Rivas—(503) 603-7713
Verification of Retirement Data
(1) For purposes of this rule:
(a) “Eligible member” means an active or inactive
member of the system who is within two years of attaining earliest service
retirement age or has attained earliest service retirement age. “Eligible
member” does not include a retired member of the system, an alternate payee, or
(b) “Verification” means a document provided to an
eligible member by PERS pursuant to section 3, chapter 1, Oregon Laws 2010.
(2)(a) PERS will determine an eligible member’s
creditable service, retirement credit, final average salary, member account
balance, and accumulated unused sick leave for a verification based on
employment data reported to PERS by the member’s employers, as reflected in
PERS’ records. Except as provided in this section, an employer may not modify an
eligible member’s records after the earlier of the 60th day after PERS notifies
the eligible member’s employer that a request for a verification has been
submitted or the date the employer confirms the records in a manner determined
(b) PERS may direct an employer to modify records if
PERS determines modification is necessary, such as:
(A) To reconcile the member’s records before the
verification is issued;
(B) To implement the resolution of a dispute under
section 3(2), chapter 1, Oregon Laws 2010; or
(C) To reissue a verification under subsection (4)(e)
of this rule.
(c) An employer may petition PERS for an extension of
the 60-day period described in subsection (a) of this section.
(A) The petition must:
(i) Be specific to an eligible member;
(ii) Specify the duration and end date of the extension
(iii) Be received by PERS no later than the 45th day
after notice is issued; and
(iv) Establish good cause why the extension should be
(B) The PERS Executive Director or a person designated
by the Director may grant or deny the request.
(C) An employer may not request more than one extension
for an eligible member.
(3) For any verification provided by PERS:
(a) All data in a verification will be as of December
31 of the last calendar year before the date the verification is produced for
which the Board has adopted annual earnings crediting.
(b) If an eligible member requests an additional
verification, an employer may not confirm or modify, nor may a member dispute,
by reason of the additional verification, data for periods before the date
specified in the most recent verification.
(4) When a member who has received a verification
retires for service, PERS may not use amounts less than the amounts verified to
calculate the member’s retirement allowance or pension, except as permitted in
section 3(3), chapter 1, Oregon Laws 2010, and this section.
(a) Amounts in a verification may be adjusted if a Tier
Two member restores forfeited creditable service and establishes Tier One
membership in the manner described in ORS 238.430(2)(b).
(b) Amounts in a verification may be adjusted to comply
(c) Amounts in a verification may be adjusted to
implement a judgment, administrative order, arbitration award, conciliation
agreement, or settlement agreement.
(d) If, subsequent to the date specified in a
verification, a member’s account is divided pursuant to ORS 238.465, the member
and alternate payee accounts will be used to determine compliance with section
3(3), chapter 1, Oregon Laws 2010 and this section.
(e) If the amounts in a verification are adjusted under
section 3(3), chapter 1, Oregon Laws 2010 or this section, the verification
will be reissued by PERS as of the date specified in the original verification.
(5) Erroneous payments or overpayments not recoverable
under section 3(6), chapter 1, Oregon Laws 2010 will be allocated annually by
Stat. Auth.: ORS 238.650, 238A.450
Stats. Implemented: 2010 OL Ch. 1,
Sec. 2-4 (Enrolled SB 897)
Hist.: PERS 11-2010, f. &
cert. ef. 11-24-10
Caption: Permits PERS to disclose
employee’s membership status to enable employer to comply with reporting
Order No.: PERS 12-2010
Filed with Sec. of
Certified to be
Rules Amended: 459-060-0020
Subject: OAR 459-070-0100 requires employers to transmit
employment information to PERS in the manner and format required by PERS; we
require employers to use the electronic reporting system (EDX). When reporting
new employees through EDX, employers must assign a hire code and wage code.
Those codes are different depending on the employee’s status with PERS: active,
inactive, or retired member or not currently a member of PERS. If the wrong
code is used when reporting a new employee, the employment record suspends, an
error report issues, and the employer and Employer Service Center staff must
reconcile the error. Typically, the only resolution is for PERS to inform the
employer of the member’s current status so the correct codes can be assigned in
the employer’s report and the records can be posted. PERS staff proposes
amending OAR 459-060-0020 with a minor modification to accommodate PERS’
sharing of limited membership status information with the employer.
Rules Coordinator: Daniel Rivas—(503) 603-7713
Confidentiality of Member’s
(1) ORS 192.502(12) unconditionally exempts from public
disclosure a member’s nonfinancial membership records and an active or inactive
member’s financial records maintained by PERS. PERS shall not release such
records to anyone other than the member, an authorized representative of the
member, or the member’s estate except:
(a) Upon the written authorization of the member, or an
individual that is legally authorized to act on behalf of the member or the
member’s estate as to PERS matters; or
(b) As otherwise provided in OAR 459-060-0030.
(2) ORS 192.502(2) conditionally exempts from public
disclosure a retired member’s financial information maintained by PERS. PERS
shall not release such records to anyone other than the member, an authorized
representative of the member, or the member’s estate unless:
(a) To do so would not constitute an unreasonable
invasion of privacy and there is clear and convincing evidence that disclosure
is in the public’s interest;
(b) PERS receives written authorization from the
member, or an individual that is legally authorized to act on behalf of the
member or the member’s estate as to PERS matters; or
(c) Release is provided for under OAR 459-060-0030.
(3)(a) Subject to subsection (b) of this section, PERS
may provide a member’s current or former employer with information from the
member’s records that is otherwise exempt from public disclosure to the extent
necessary to enable the employer:
(A) To determine whether a non-PERS retirement plan
maintained by the employer complies with any benefit or contribution
limitations or nondiscrimination requirement imposed by applicable federal or
(B) To apply any coordination of benefits requirement
contained in any non-PERS benefit plan maintained by the employer;
(C) To perform any necessary account reconciliation
following an integration of the employer’s retirement plan into PERS; or
(D) To reconcile an actuarial valuation by providing
the employer with the following member information:
(i) Salary information;
(ii) Employment history; or
(iii) Contribution history.
(b) PERS will not provide the information described in
subsection (a) of this section unless the employer demonstrates to the
satisfaction of PERS that the information is necessary to accomplish one of the
purposes described in paragraphs (A), (B), (C) and (D) of subsection (a) and
the employer certifies in writing that it will not disclose the information to
any third party except to the extent permitted under this division and ORS
(4) To enable an employer to comply with OAR
459-070-0100, PERS may disclose to the employer an employee’s status as an
active, inactive, or retired member, or a non-member.
(5) PERS will not provide a mailing list of its members
or their dependents to any individual or enterprise.
Hist.: PERS 8-1996, f. & cert.
ef. 11-12-96; PERS 7-2002, f. & cert. ef. 5-24-02; PERS 16-2003, f. &
cert. ef. 12-15-03; PERS 12-2010, f. & cert. ef. 11-24-10
Notes 1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2010.