Oregon Bulletin

January 1, 2011


Oregon Public Employees Retirement System
Chapter 459

Rule Caption: New rule to implement verification of retirement provisions of Senate Bill 897 (2010).

Adm. Order No.: PERS 11-2010

Filed with Sec. of State: 11-24-2010

Certified to be Effective: 11-24-10

Notice Publication Date: 7-1-2010

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 completing implementation.

      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 a beneficiary.

(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 by PERS.

(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 requested;

(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 granted.

(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 with USERRA.

(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 the Board.

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


Rule Caption: Permits PERS to disclose employee’s membership status to enable employer to comply with reporting requirements.

Adm. Order No.: PERS 12-2010

Filed with Sec. of State: 11-24-2010

Certified to be Effective: 11-24-10

Notice Publication Date: 9-1-2010

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 Records

(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 state law;

(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 192.502(10).

(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.

Stat. Auth.: ORS 192.502 & 238.650

Stats. Implemented: ORS 192.410-505, 237.410-520, 237.610-620, 237.950-980 & 238

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

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