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Oregon Bulletin

March 1, 2011

 

Oregon Public Employees Retirement System
Chapter 459

Rule Caption: restricts employer reporting for calendar years for which annual reconciliation is complete. Updates penalty provisions.

Adm. Order No.: PERS 1-2011

Filed with Sec. of State: 2-2-2011

Certified to be Effective: 2-2-11

Notice Publication Date: 12-1-2010

Rules Amended: 459-070-0100, 459-070-0110

Subject: The modifications to OAR 459-070-0100 establish that, beginning with calendar year 2011, when reconciliation of reports for a calendar year is completed in March of the following year, an employer may no longer submit or modify reports of the “closed” year. Any exceptions noted by PERS in a report submitted during the calendar year must be reconciled before the year is closed. The trigger for closing a year is the date PERS issues the employer a statement due in March of the following year. For example, when PERS issues a statement of contributions to an employer in March, 2012, the employer would no longer be allowed to submit or modify reports for pay periods in calendar year 2011.

      The modifications to OAR 459-070-0100 also update the penalty provisions, permitting the Director or his designee to waive penalties for reports due in calendar year 2011, but requiring employers to petition for waiver for reports due in subsequent calendar years. Other edits are for clarity and consistency.

      The modifications to OAR 459-070-0110 update and clarify employer obligations to timely remit contributions and penalties, capture more comprehensively the allocation of amounts paid to PERS, and clarify penalty and waiver provisions consistent with OAR 459-070-0100. It is expected the penalty provisions of both rules will be waived for calendar year 2011 to provide substantial notice to employers and permit them to refine procedures to accommodate the restriction of late reporting effective March, 2012.

Rules Coordinator: Daniel Rivas—(503) 603-7713

459-070-0100

Employer Reporting

(1) Definition. “Pay period” means the span of time covered by an employer’s report to PERS.

(2) Unless otherwise agreed upon by the PERS Executive Director and the employer, an employer must transmit to PERS an itemized report of all information required by PERS.

(a) A report must include wage, service, and demographic data for all employees for a pay period.

(b) Except as provided in subsection (c) of this section, an employer may not submit or modify a report for a pay period within a calendar year on or after the first date in March of the subsequent calendar year on which PERS issues the employer a statement of contributions due. This subsection applies to pay periods beginning on or after January 1, 2011.

(c) PERS will permit an employer to submit or modify a report subject to the limitation of subsection (b) of this section if PERS determines the report is necessary for accurate benefit administration.

(3) The report required under section (2) of this rule must be acceptable to PERS and transmitted on forms furnished by the agency or in an equivalent format. The report must be transmitted electronically, faxed, or postmarked, as applicable, no later than three business days after the end of the pay period assigned to the employer under section (4) of this rule.

(4) PERS will assign an employer a pay period which most closely matches the employer’s pay cycle:

(a) Monthly: the pay period ends on the last day of the month;

(b) Semi-monthly: the pay period ends on the fifteenth of the month and the last day of the month;

(c) Weekly: the pay period ends the Friday of every week; or

(d) Biweekly: the pay period ends every other Friday.

(5) If a report required under section (2) of this rule is accepted by PERS, PERS will notify the employer of any exceptions and the employer must reconcile its report. The corrected report must be transmitted to PERS before the employer is subject to the limitation of subsection (2)(b) of this rule for that report.

(6)(a) An employer that fails to transmit a report as required under sections (2) and (3) of this rule must pay a penalty equal to one percent of the total amount of the prior year’s annual contributions or $2000, whichever is less, for each month the employer is delinquent.

(b) Penalties under subsection (a) of this section continue to accrue until the earlier of the date the report is submitted or the date the limitation of subsection (2)(b) is effective.

(c) Notwithstanding subsection (b) of this section, an employer that submits or modifies a report pursuant to subsection (2)(c) of this rule must pay the penalty described in subsection (a) of this section.

(7) The PERS Executive Director or a person designated by the Director may waive the penalty described in section (6) of this rule for reports due on or after January 1, 2011 and before January 1, 2012. For reports due on or after January 1, 2012, penalties may be waived by the Director or the Director’s designee only upon written petition from the employer.

Stat. Auth.: ORS 238A.450, 238.650

Stats. Implemented: ORS 238A.050 & 238.705

Hist.: PERS 25-2003, f. 12-30-03 cert. ef. 1-1-04; PERS 29-2004, f. & cert. ef. 11-23-04; PERS 13-2005, f. & cert. ef. 7-5-05; PERS 1-2011, f. & cert. ef. 2-2-11

459-070-0110

Employer Remittance of Contributions

(1) Definition. “Statement date” means the date a statement of contributions or penalty due is generated by PERS.

(2) When PERS issues a statement of contributions due and, if applicable, any penalty due, unless otherwise agreed upon by the PERS Executive Director and the employer, an employer must pay to PERS the total amount of contributions and penalty due no later than five business days from the statement date. Payment must be made pursuant to OAR 459-005-0225.

(3) An employer that fails to pay the total amount due on a statement within the time specified in section (2) of this rule must pay a penalty equal to one percent of the total amount of contributions due on that statement for each month the employer is delinquent.

(4) If an employer transmits an amount less than the amount required by section (2) of this rule, PERS will allocate the amount to receivables by due date, oldest first. If multiple receivables have the same due date, PERS will allocate the amount to the receivables in the following order:

(a) The Individual Account Program;

(b) The OPSRP Pension Program;

(c) The Retiree Health Insurance Account and the Retiree Health Insurance Premium Account;

(d) Police Officer and Firefighter Unit Accounts;

(e) Judge member accounts;

(f) The PERS Chapter 238 Program;

(g) Penalties;

(h) Benefit Equalization Fund invoices;

(i) Social Security; and

(j) Other receivables due from the employer.

(5) By agreement with an employer, PERS may allocate amounts paid by the employer to specific receivables.

(6) The PERS Executive Director or a person designated by the Director may waive the penalty described in section (3) of this rule for contributions due on or after January 1, 2011 and before January 1, 2012. For contributions due on or after January 1, 2012, penalties may be waived by the Director or the Director’s designee only upon written petition from the employer.

Stat. Auth.: ORS 238A.450, 238.650

Stats. Implemented: ORS 238A.050 & 238.705

Hist.: PERS 25-2003, f. 12-30-03 cert. ef. 1-1-04; PERS 29-2004, f. & cert. ef. 11-23-04; PERS 13-2005, f. & cert. ef. 7-5-05; PERS 1-2011, f. & cert. ef. 2-2-11

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.

2.) Copyright 2011 Oregon Secretary of State: Terms and Conditions of Use

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