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OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM

 

DIVISION 11

RETIREMENT CREDIT

459-011-0050

Forfeiture and Restoration of Service Rights

(1) A member who, pursuant to ORS 238.265, withdraws the amount credited to the member’s account forfeits all membership rights accrued under ORS chapter 238 before the date of the withdrawal, including any service rights attributable to employment before the date of the withdrawal.

(2) Any such person who reenters the service of a participating employer within five years from the date of the last separation from employment that preceded the member’s withdrawal may, at any time during the one-year period immediately following the date of reemployment, repay to PERS, in a single lump sum payment, an amount equal to the amount withdrawn plus the earnings the amount withdrawn would have accumulated from the date of withdrawal to the date of repayment.

(3) Upon repayment as described in section (2) of this rule, the PERS Chapter 238 Program membership and service rights forfeited by the withdrawal will be restored. The former member will reestablish membership in the PERS Chapter 238 Program on the first day of the month following the date of the repayment. Service by the former member from date of reemployment to the date membership is reestablished shall be attributed to the PERS Chapter 238 Program. The withdrawn member account will be reestablished in the amount of the repayment.

(4) An employee who is terminated from employment, withdraws the member account under ORS 238.265, and is reinstated to employment in connection with a retroactive payment may restore membership and service rights within the time period described in section (2) of this rule or within one year from the date the employee actually returns to employment, whichever is later. A retroactive payment must be allocated pursuant to ORS 238.008. So allocated, the payment must be used in the determination of employee and employer contributions and in the calculation of benefits.

(5) Notwithstanding the provisions of this rule, a member who withdraws pursuant to ORS 238.265 and receives an additional amount pursuant to section 2, chapter 276, Oregon Laws 2003, may not reestablish membership under section (2) of this rule.

Stat. Auth.: ORS 238.650
Stats. Implemented: ORS 238.008, 238.105, 2007 OL Ch. 769
Hist.: PER 8, f. 12-15-55; PERS 1-1996, f. & cert. ef. 3-26-96; Renumbered from 459-010-0060; PERS 2-2007, f. & cert. ef. 1-23-07; PERS 17-2007, f. & cert. ef. 11-23-07; PERS 2-2010, f. & cert. ef. 5-28-10

459-011-0100

Credit for Military Service under USERRA

(1) Purpose. The purpose of this rule is to implement ORS 238.156(1).

(2) Limitation of scope of rule. Contributions, benefits and service credit provided under this rule may not exceed contributions, benefits and service credit required under federal law for periods of military service.

(3) Definitions. For purposes of this rule:

(a) “Employee” means an individual employed by a participating public employer in a qualifying position, as defined in ORS 238.005 and who is not excluded from the definition of employee as set forth in ORS 238.005.

(b) “Employee contributions” means contributions made to the Fund.

(c) “Employer” means the legal entity that employed an individual at the time that individual left for military service. For purposes of this rule, the State of Oregon is a single legal entity. Each separate school district is a separate legal entity.

(d) “Military service” means the performance of duty on a voluntary or involuntary basis in a uniformed service under competent authority and includes:

(A) Active duty;

(B) Active duty for training;

(C) Initial active duty for training;

(D) Inactive duty training;

(E) Full-time National Guard duty;

(F) A period for which an employee is absent from a position of employment for the purpose of an examination to determine the fitness of the employee to perform any of the above types of duty; or

(G) A period for which an employee is absent from employment for the purpose of performing funeral honors duty as authorized by 10 U.S.C. Sec. 12503 or 32 U.S.C. Sec. 115.

(e) “Salary” means the rate of pay the employee would have earned if he or she had remained employed during the period of military service, including any increases that would have been awarded the employee based on longevity of employment or seniority of position. If such rate of pay is not reasonably certain, the rate shall be based on the employee’s average rate of pay from the employer. The average rate of pay shall be calculated for a period not to exceed the 12-month period immediately preceding the period of military service.

(f) “Uniformed services” means the following:

(A) Armed Forces;

(B) Army National Guard;

(C) Air National Guard;

(D) Commissioned corps of the Public Health Service; and

(E) Any other category of individuals designated by the President in time of war or national emergency.

(4) Retirement credit under USERRA.

(a) Eligibility. An employee shall be eligible for the benefits of this section if:

(A) The employee leaves PERS-covered employment to perform military service;

(B) The cumulative length of the employee’s absence from employment with the employer for military service does not exceed the limits set forth in USERRA Sec. 4312;

(C) The employee initiates reemployment on or after December 12, 1994, with the same PERS-covered employer within the time limits specified in USERRA Sec. 4312; and

(D) All other eligibility requirements for benefits under USERRA are met.

(b) Credit for military service. An employee who meets the eligibility requirements of subsection (a) of this section shall be credited with the amount of retirement credit the employee would have accrued if he or she had remained in employment with the employer during the period of military service, only to the extent that the employee contributions have been made.

(c) Termination. An employee’s eligibility for the benefits of this rule terminates upon the occurrence of one of the disqualifying events listed in USERRA Sec. 4304.

(5) Employee contributions.

(a) Employee contributions shall be made upon reemployment for eligible military service in accordance with the following:

(A) Contributions to be made by the employer. If the employee was entitled to employer-paid pre-tax (EPPT) contributions as described in OAR 459-009-0200 as of the date the employee left employment to perform military service, the employer must pay, in a lump sum payment, the amount of employee contributions that would have been made if the employee had remained in the employment of the employer during the period of military service, based on salary as defined in section (3) of this rule.

(B) Contributions to be made by the employee. If the employee was entitled to only member-paid pre-tax (MPPT) or member-paid after-tax (MPAT) contributions as described in OAR 459-009-0200 as of the date the employee left employment to perform military service, the employee may contribute part or all of the employee contributions that would have been made if the employee had remained in the employment of the employer during the period of military service, based on salary as defined in section (3) of this rule. Contributions made under this paragraph must be remitted to PERS by:

(i) Payroll deduction; or

(ii) Monthly payment of no less than one month of contributions; or

(iii) Lump-sum payment.

(b) Any individual, agency, or organization may pay the employee contributions specified in paragraph (5)(a)(B) on behalf of the employee under the payment provisions set forth in subparagraph (5)(a)(B)(ii) or (iii).

(c) Contributions made under this section must be made during the period beginning with reemployment and whose duration is three times the period of the employee’s military service, such period not to exceed five years.

(d) Any contributions made under this section shall be added to the employee’s regular or variable account(s).

(e) Contributions made under this section may not include nor be credited with earnings or losses that would have been credited during the period of military service.

(f) Contributions made under this section may not exceed the amount of employee contributions that would have been made if the employee had remained in the employment of the employer during the period of military service, based on salary as defined in section (3) of this rule.

(A) The maximum amount of employee contributions that may be submitted under this section must be reduced by the amount of employee contributions attributable to differential wage payments received by the employee for the period of military service.

(B) Employee contributions attributable to differential wage payments received by the employee for the period of military service must be considered employee contributions under subsection (4)(b) of this rule if the employer reports to PERS that the employee is eligible for benefits pursuant to subsection (4)(a) of this rule.

(C) Employee contributions attributable to differential wage payments paid to the employee during the period of military service must be credited with earnings and losses that would have been credited during the period of military service.

(6) Employer contributions. Any employer contributions associated with credit for military service under this rule must be made as directed by PERS in accordance with ORS 238.225.

(7) The effective date of this rule is January 1, 2009.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 238.650 & 238.156
Stats. Implemented: ORS 238.156
Hist.: PER 8, f. 12-15-55; PERS 1-1996, f. & cert. ef. 3-26-96; Renumbered from 459-010-0015; PERS 2-2004, f. & cert. ef. 1-22-04; PERS 19-2005, f. 11-1-05, cert. ef. 1-1-06; PERS 16-2006, f. & cert. ef. 11-24-06; PERS 1-2009, f. & cert. ef. 2-12-09

459-011-0110

Credit for Military Service under ORS 238.156(3)

(1) Definitions. For purposes of this rule:

(a) “Armed Forces” means the:

(A) Army;

(B) Navy;

(C) Air Force;

(D) Marine Corps; and

(E) Coast Guard.

(b) “Employee” means an individual employed by a participating public employer in a qualifying position, as defined in ORS 238.005 and who is not excluded from the definition of employee as set forth in ORS 238.005.

(c) “Employer” means the legal entity that employed an individual at the time that individual left for military service. For purposes of this rule, the state of Oregon is a single legal entity. Each separate school district is a separate legal entity.

(d) “Military service” means the period during which the employee is in active duty service in the Armed Forces.

(e) “Salary” means the employee’s rate of pay, for contribution and benefit calculation purposes, at the time the employee entered or reentered military service.

(2) Retirement credit under ORS 238.156(3).

(a) Eligibility. An employee shall be eligible for the benefits of this rule if:

(A) The employee leaves employment to perform military service;

(B) The employee returns to employment with the same employer after other than dishonorable discharge from military service and within the time limits specified in ORS 238.156(3)(b); and

(C) The employee is either not entitled to or would receive a lower benefit under the provisions of OAR 459-011-0100.

(b) Credit for military service. An employee who meets the eligibility requirements of subsection (a) of this section shall be credited with the amount of retirement credit the employee would have accrued if he or she had remained in employment with the employer during the period of military service, provided that all required contributions have been made.

(3) Contributions for the period of military service. To receive credit for the period of military service, contributions must be made to the Fund in accordance with the following:

(a) Contributions must be made in a lump sum payment as specified in ORS 238.156(3)(c);

(b) Such lump sum payment must equal six percent of the salary that would have been paid to the employee had the employee remained in employment with the employer during the period of military service based on the employee’s salary rate at the time the employee entered or reentered military service;

(c) Any individual, agency, or organization may pay the amount specified in this subsection on behalf of the employee; and

(d) Any contributions made under this section shall be added to the employee’s regular account and in all respects shall be considered as though made by payroll deduction.

(e) Contributions made under this rule may not include nor be credited with earnings or losses that would have been credited during the period of military service.

(f) The amount of the lump sum payment required under subsection (b) of this section must be reduced by the amount of employee contributions attributable to differential wage payments received by the employee for the period of military service.

(A) Employee contributions attributable to differential wage payments received by the employee for the period of military service must be considered employee contributions under subsection (2)(b) of this rule if the employee submits the lump sum payment as reduced under this subsection.

(B) Employee contributions attributable to differential wage payments paid to the employee during the period of military service must be credited with earnings and losses that would have been credited during the period of military service.

(4) Employer contributions. Any employer contributions associated with credit for military service under this rule must be made as directed by PERS in accordance with ORS 238.225.

(5) The effective date of this rule is January 1, 2009.

Stat. Auth.: ORS 238.650 & 238.156
Stats. Implemented: ORS 238.156
Hist.: PER 8, f. 12-15-55; PERS 1-1996, f. & cert. ef. 3-26-96; Renumbered from 459-010-0155; PERS 2-2004, f. & cert. ef. 1-22-04; PERS 19-2005, f. 11-1-05, cert. ef. 1-1-06; PERS 1-2009, f. & cert. ef. 2-12-09; PERS 1-2009, f. & cert. ef. 2-12-09

459-011-0115

Military Full Cost Purchase

(1) For the purposes of this rule:

(a) "Active Duty for Training" means periods of active service where the member engages in training only.

(b) "Armed Forces" means the Army, Navy, Air Force, Marine Corps and the Coast Guard and the reserve components thereof.

(c) "Effective Retirement Date" means the date the member is eligible to retire and has indicated on their retirement application.

(d) "Full Cost" means the actual cost to the system of the retirement credit for military service being purchased, including any applicable administrative fee.

(e) "Military Service" means qualifying service as described under section (2) of this rule.

(2) An eligible member who served in the Armed Forces prior to becoming a member of PERS may purchase up to four years of retirement credit for military service if they:

(a) Were other than dishonorably discharged from the Armed Forces;

(b) Entered or reentered active service after January 1, 1950, or were in active service on January 1, 1950;

(c) Were on active duty for other than active duty for training; and

(d) Except as provided in section (3) of this rule, the member must be neither receiving, nor eligible to receive, a pension or retirement for service in the Armed Forces at the time of their Effective Retirement Date.

(3) If member is or was a member of a reserve component of the Armed Forces and would be entitled to a pension or retirement for service in the military, the purchase or retirement credit must be made prior to member reaching age 60.

(4) If the member has reached earliest retirement age, the purchase may be made within 90 days before and after the member's effective retirement date.

(a) If the member has not reached earliest retirement date, the purchase may be made only in the 90 day period immediately before the member's effective retirement date.

(5) A member electing to make a full cost purchase may elect to have the service retirement allowance determined under any calculation for which the member is eligible for under ORS 238.300 even if the calculation does not produce the highest retirement allowance.

(6) If the full cost of the purchase is not known at the time the payment is required, the member must pay the remainder of the full cost purchase. If the member does not pay the entire full cost, the member's full cost purchase request will be rejected.

(7) To verify military service, a copy of the member's form DD-214 or other acceptable military discharge or service records must be submitted to PERS with the full cost purchase request.

Stat. Auth.: ORS 238.650
Stats. Implemented: ORS 238.157
Hist.: PERS 9-2006, f. & cert. ef. 4-5-06

459-011-0150

General Purchases

(1) For purposes of this rule, “purchase” means restoration of creditable service under ORS 238.115 or obtaining retirement credit under ORS 238.125, 238.135, 238.145, 238.148, 238.156, 238.157, 238.160, 238.162, 238.165, 238.175, 526.052 or section 2, Chapter 971, Oregon Laws 1999.

(2) To make a purchase, a member must submit the application for restoration of creditable service or to obtain retirement credit and the full purchase cost, provided by PERS, within the time period established in the particular statute.

(3)(a) If the purchase cost is adjusted and requires an additional payment, PERS will notify the member of the balance due. To complete the purchase, the balance due must be received by PERS by the later of:

(A) The date set by PERS; or

(B) The member’s effective retirement date.

(b) If the balance due required in subsection (a) of this section is not received within the time period established in subsection (a) of this section, PERS will cancel the purchase and return the amount paid under section (2) of this rule to the member, subject to the provisions of OAR 459-005-0580.

(4) If the purchase cost is adjusted and is lower than the amount paid under section (2) of this rule, PERS will refund the excess amount to the member, subject to the provisions of OAR 459-005-0580.

Stat. Auth.: ORS 238.650
Stats. Implemented: ORS 238.115, 238.125, 238.135, 238.145, 238.148, 238.156, 238.157, 238.160, 238.162, 238.165, 238.175, 526.052 and sec. 2, Ch. 971, Ol 1999
Hist.: PERS 2-2011, f. & cert. ef. 6-1-11

459-011-0200

Re-Establishment of Membership

No employee of the Federal Cooperative Extension Service or any other service for an employer participating in the system which mandates participation in the federal Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS), who cancels membership in the Public Employees Retirement System pursuant to ORS 238.015(9)(b) or (c) may thereafter repay into the retirement fund the amount withdrawn upon cancellation, or in any other manner re-establish a right to benefits canceled by the withdrawal.

Stat. Auth.: ORS 238.650
Stats. Implemented: ORS 238.015(9)
Hist.: PER 8, f. 12-15-55; PERS 6-1992, f. & cert. ef. 11-9-92; PERS 1-1996, f. & cert. ef. 3-26-96; Renumbered from 459-010-0020; PERS 21-2005, f. & cert. ef. 11-1-05

459-011-0500

Accumulated Unused Sick Leave

(1) Pursuant to ORS 238 .350, a public employer may request that one or more groups of its employees be compensated for accumulated unused sick leave in the form of increased retirement benefits. The request, in writing and accompanied by certified copy of the public employer's governing body's official action, shall be effective not earlier than the first of the calendar month following date of the official action by the public employer.

(2) The Board shall determine the monetary value of 1/2 of the accumulated unused sick leave by the following procedure:

(a) For retiring employees not subject to ORS 238 .350(1)(b), the hourly rate used to establish the monetary value of the unused sick leave shall be determined by dividing the monthly final average salary by 173.3 hours, multiplying this hourly rate times 1/2 of all accumulated unused sick leave hours reported, and adding this value to the final average salary calculation;

(b) For retiring employees subject to ORS 238 .350(1)(b), the hourly rate used to establish the monetary value of the unused sick leave shall be determined by dividing the salary in the final contract of employment by the number of contract hours, multiplying this hourly rate times 1/2 of all unused sick leave hours reported for employment as described in ORS 238 .350(1)(b) and adding this value to the final average salary calculation;

(c) The monetary value of the unused sick leave for retiring employees described in ORS 238 .350 (1)(b) who were employed under contracts for 12 months or earned 96 hours of sick leave in any of the three or less years used in determining final average salary will be valued as provided in subsection (a) of this section.

(3) Upon an employee's termination of employment from any PERS covered position, a public employer shall report the amount of accumulated unused sick leave on forms furnished by the Board. The public employer shall transmit the forms to the Board and provide a legible copy of the form or a facsimile thereof to each terminated employee immediately following final payment of salary. For PERS purposes, accumulated unused sick leave cannot exceed an accrual of more than eight hours per month worked less usage.

(4) To be eligible for the use of unused sick leave pursuant to ORS 238 .350, a member must have been in the employ of a public employer and in a covered group on or after the effective date of an employer's election to extend the use of accumulated unused sick leave. A member retiring with and effective retirement date the same as the effective date of the election is deemed an employee on the effective date of the election if the member was employed during the month proceeding the effective date of the employer's election.

Stat. Auth.: ORS 238 .350 & ORS 238 .650
Stats. Implemented: ORS 238 .350
Hist.: PER 3-1982(Temp), f. & ef. 12-13-82; PERS 1-1990(Temp), f. & cert. ef. 1-3-90; PERS 3-1990; f. & cert. ef. 2-12-90; PERS 1-1996, f. & cert. ef. 3-26-96; Renumbered from 459-010-0158

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