Loading
 

 

Oregon Bulletin

November 1, 2013

Oregon Public Employees Retirement System, Chapter 459

Rule Caption: Clarifies the administration of death benefits for OPSRP members who die before pension is issued.

Adm. Order No.: PERS 7-2013

Filed with Sec. of State: 9-27-2013

Certified to be Effective: 9-27-13

Notice Publication Date: 7-1-2013

Rules Adopted: 459-075-0170

Subject: Under ORS 238A.180, an OPSRP Pension Program member’s monthly pension is payable on their effective retirement date and ends on the first day of the month in which the member’s death occurs. An ambiguous event occurs when the member dies in the month of retirement and the pension payable on the first of the month also ends on the first of the same month.

   This rule clarifies the accrual of pension benefits and the last pension benefit the member or their benefit recipient is entitled to receive. Under OPSRP, a member or beneficiary who is receiving a monthly pension payment will be paid that benefit for the month in which that person dies. This result is different than a Tier One or Two member or their beneficiary, because of differences in the OPSRP statute. The rule is intended to clarify this difference.

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

459-075-0170

Payment of OPSRP Pension Program Benefits

(1) Definitions. For purposes of this rule:

(a) “Benefit recipient” means an OPSRP Pension Program member, surviving beneficiary or alternate payee who is entitled to receive a retirement benefit under the OPSRP Pension Program.

(b) “Non-survivorship benefit” means a lifetime benefit that is paid to an eligible benefit recipient and ends after death.

(c) “Survivorship benefit” means a survivor monthly pension benefit that is paid to a surviving beneficiary after an OPSRP Pension Program member’s death.

(2) An OPSRP monthly pension benefit accrues on the first day of the calendar month and shall be paid to the benefit recipient on the first day of the following month.

(3) If a benefit recipient who is receiving an OPSRP pension dies during a calendar month:

(a) Non-survivorship benefits shall accrue on the first day of the month of death and shall be paid to the deceased member or deceased alternate payee on the first day of the following month.

(b) Survivorship benefits shall accrue on the first day of the month after the last payable OPSRP pension benefit to a deceased member or deceased alternate payee.

(4) If the member or alternate payee is entitled to receive a cash-out of a small benefit under ORS 238A.195, the benefit accrues on the member’s or alternate payee’s effective retirement date and shall be paid to the member or alternate payee.

Stat. Auth.: ORS 238A.450

Stats. Implemented: ORS 238A.180, 238A.185, 238A.190 & 238A.195

Hist.: PERS 7-2013, f. & cert ef. 9-27-13


Rule Caption: Implement out-of-state tax remedy provisions of Senate Bill 822 (2013).

Adm. Order No.: PERS 8-2013

Filed with Sec. of State: 9-27-2013

Certified to be Effective: 9-27-13

Notice Publication Date: 7-1-2013

Rules Amended: 459-013-0310, 459-013-0320

Subject: Senate Bill 822 (2013) became effective on May 6, 2013. The bill prohibits PERS from paying increased benefits provided by SB 656 (Chapter 796, Oregon Laws 1991), or HB 3349 (Chapter 569, Oregon Laws 1995) if the benefit payments are not subject to Oregon personal income tax because the recipient is not an Oregon resident (as provided in ORS 316.127(9)). The rule modifications are intended to conform existing administrative rules to this new law.

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

459-013-0310

Payment of Increased Benefits under ORS 238.372 to 238.384

(1) For purposes of determinations under ORS 238.372 to 238.384:

(a) “Person” includes a member, an alternate payee, or a beneficiary.

(b) The increased benefit percentage to be added to a benefit paid to a beneficiary under ORS 238.390, 238.395, 238.400, 238.405, or under an optional form of retirement allowance under ORS 238.305 or 238.325 will be determined based on:

(A) The increased benefit percentage(s) for which the member is otherwise eligible under ORS 238.364, 238.366 and 238.368; and

(B) The residency of the beneficiary.

(2) PERS will make the following determinations on residency status for the purpose of determining increased benefit eligibility under ORS 238.372 to 238.384, based upon the yearly Oregon personal income tax return information provided by the Department of Revenue.

(a) If the Department of Revenue notifies PERS that a person:

(A) Filed Oregon personal income tax as a resident, PERS will treat the person as a resident of Oregon.

(B) Filed Oregon personal income tax as a non-resident, PERS will treat the person as a non-resident of Oregon, except as provided in section (3) below.

(C) Did not file Oregon personal income tax, PERS will treat the person as a non-resident of Oregon, except as provided in section (3) below.

(D) Filed Oregon personal income tax as a partial-year resident and the prior year the person filed personal income tax as a resident, PERS will treat the person as a non-resident of Oregon, except as provided in section (3) below.

(E) Filed Oregon personal income tax as a partial-year resident and the prior year the person filed personal income tax as a non-resident, PERS will treat the person as a resident of Oregon.

(F) Filed Oregon personal income tax as a partial-year resident and the prior year the person did not file personal income tax, PERS will treat the person as a resident of Oregon.

(b) If PERS cannot make a residency status determination based upon information provided by the Department of Revenue or the person did not otherwise provide PERS with residency status information, PERS will treat the person as a non-resident of Oregon, except as provided in section (3) below.

(3) Residency status information submitted on a form provided by PERS and received between January 1 and December 15 of the current calendar year will, for purposes of determining increased benefit eligibility under ORS 238.372 to 238.384, supersede any Oregon personal income tax return information provided by the Department of Revenue pursuant to section (2) of this rule.

Stat. Auth.: ORS 238.650

Stats. Implemented: ORS 238.362, 238.364, 238.366, 238.368 & 238.372 - 238.384

Hist.: PERS 6-2012, f. & cert. ef. 3-28-12; PERS 8-2013, f. & cert. ef. 9-27-13

459-013-0320

Payment of Increased Benefits to an Alternate Payee

(1) The provisions of this rule apply to an alternate payee who receives retirement benefit payments derived from an “alternate payee account” or a separate benefit option as provided under OAR 459-045-0010(2) or (3)(b).

(2) If an alternate payee is eligible to receive increased benefits under ORS 238.465(5), the percentage of the increased benefit payable to the member, as determined under ORS 238.364, 238.366, 238.368, and 238.372 to 238.384, is the increased benefit percentage for which the alternate payee is eligible. If the member predeceases the alternate payee, the increased benefit percentage payable to the member at the time of death remains the increased benefit percentage for which the alternate payee is eligible.

(3) If the alternate payee is eligible for the increased benefit under section (2), payment of the increased benefit to the alternate payee under ORS 238.372 to 238.384 is determined by the residency of the alternate payee.

Stat. Auth.: ORS 238.650

Stats. Implemented: ORS 238.362, 238.364, 238.366, 238.465 & 238.372 - 238.384

Hist.: PERS 6-2012, f. & cert. ef. 3-28-12; PERS 8-2013, f. & cert. ef. 9-27-13


Rule Caption: Adopt new assumed rate and specify effective date of implementation.

Adm. Order No.: PERS 9-2013

Filed with Sec. of State: 9-27-2013

Certified to be Effective: 9-27-13

Notice Publication Date: 8-1-2013

Rules Adopted: 459-007-0007

Subject: At the July 26, 2013 PERS Board meeting, staff gave second notice of rulemaking, proposing a new rulemaking cycle to imbed the new assumed rate in rule and, based on public comment, to move the implementation of any rule change to an effective date of January 1 for all PERS transactions. The rule sets forth a new assumed rate and specifies when the assumed rate will be effective for PERS transactions.

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

459-007-0007

Assumed Rate

(1) The Board will review the assumed rate in odd-numbered years as part of the Board’s review and adoption of actuarial assumptions and methods.

(2) The Board may adopt a change in the assumed rate at any time. A change in the assumed rate is effective the first of the year following the Board’s adoption of the change.

(3) The assumed rate is set at 7.75 percent, effective on January 1, 2014.

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

Stats. Implemented: ORS 238 & 238A

Hist.: PERS 9-2013, f. & cert. ef. 9-27-13

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, 2012.

2.) Copyright 2013 Oregon Secretary of State: Terms and Conditions of Use

Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722
Phone: (503) 986-1523 • Fax: (503) 986-1616 • oregon.sos@state.or.us

© 2013 State of Oregon All Rights Reserved​