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The Oregon Administrative Rules contain OARs filed through August 15, 2014
 
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OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM

 

DIVISION 13

RETIREMENT BENEFITS

459-013-0040

Documentary Evidence

(1) In order to receive retirement benefits, each member of the system shall furnish to the Retirement Board reasonably satisfactory evidence as to his or her date of birth.

(2) In order for a member to receive benefits under option No. 2 or 3, the Retirement Board must be furnished with reasonably satisfactory evidence as to the beneficiary's date of birth.

(3) Any documentary evidence or photostatic copies thereof, submitted to the Retirement Board as proof of date of birth shall become the property of the board and will not be returned under any circumstances (naturalization or citizenship papers may be submitted for the inspection of the Board after which they will be returned).

Stat. Auth.: ORS 238 .650
Stats. Implemented: ORS 238
Hist.: PER 8, f. 12-15-55; PERS 1-1996, f. & cert. ef. 3-26-96; Renumbered from 459-010-0065

459-013-0050

Combined Service

(1) For purposes of this rule:

(a) “Combined service” means periods of active membership in two or more different classifications.

(b) “Concurrent service” means active membership for the same period with two or more different employers in two or more different classifications or actuarial groups.

(2) A member who has combined service shall have their service retirement or disability retirement allowance calculated as provided in ORS Chapter 238 and this rule. The benefit calculations may include:

(a) Account balance, and final average salary as of the effective retirement date;

(b) Creditable service as provided under OAR 459-010-0014;

(c) Prorated creditable service for periods of concurrent service;

(d) All calculation methods applicable to the member under ORS 238.300 or 238.320;

(e) The optional forms of retirement allowance selected by the member under ORS 238.305 or 238.325;

(f) For early and normal retirement eligibility, the rules as described in OAR 459-010-0019;

(g) A statutory factor applicable for the classification of the member during each period of creditable service;

(h) A single early retirement factor, if applicable;

(i) The actuarial equivalency factor tables in effect on the effective retirement date; and

(j) A variable adjustment for members who participated in the Variable Annuity Program on and after January 1, 1982.

Stat. Auth.: ORS 238.650
Stats. Implemented: ORS 238.260, 238.280, 238.300, 238.305, 238.320 & 238.325
Hist.: PERS 4-2011, f. & cert. ef. 8-4-11

459-013-0060

Payment of Retirement Benefits

(1) Retirement benefits shall be payable each month as of the first day of the month following the effective date of retirement. At the time of death, accrued benefits shall be payable as provided under OAR 459-014-0050(4).

(2) If a retiree elects to receive more than one installment payment as provided under ORS 238.305(4), the subsequent installment payments will be paid on the anniversary of the first day of the month that the initial installment payment was made.

Stat. Auth.: ORS 238.650
Stats. Implemented: ORS 238.300 & 238.305
Hist.: PER 8, f. 12-15-55; PERS 1-1996, f. & cert. ef. 3-26-96; Renumbered from 459-010-0070; PERS 21-2005, f. & cert. ef. 11-1-05; PERS 6-2013, f. & cert. ef. 7-26-13

459-013-0110

Eligibility for Early Benefits

A member who reaches earliest retirement age under ORS 238.280 becomes eligible for a service retirement benefit that will be paid upon written application to the Board. After becoming eligible under that section, a member may not withdraw their account under ORS 238.265 nor will their membership terminate by operation of ORS 238.095(2).

Stat. Auth.: ORS 238.650
Stats. Implemented: ORS 238.280 & 238.095
Hist.: PER 8, f. 12-15-55; PERS 1-1996, f. & cert. ef. 3-26-96; Renumbered from 459-010-0090; PERS 5-1999, f. & cert. ef. 11-15-99; PERS 15-2007, f. & cert. ef. 11-23-07

459-013-0260

Effective Date Used in the Establishment of Service Retirement Benefits

(1) A member’s service retirement allowance under ORS 238.300 and 238.305 will be established as of the member’s effective date of retirement.

(2) A member’s effective date of retirement is the later of:

(a) The first day of the calendar month specified by the member, who is eligible for retirement under the provisions of ORS 238.280 or 238.005, on their service retirement application; or

(b) The first of the calendar month following the date an application is received by the Public Employees Retirement System (PERS); or

(c) The first of the calendar month following the date of separation from all employers participating in PERS and in the same controlled group.

(3) For the purpose of this rule, “controlled group” is a group of employers required to be treated as a single employer for the purpose of satisfying the requirements for qualified retirement plans under federal law.

(4) The effective date of this rule is January 1, 2010.

Stat. Auth.: ORS 238.650
Stats. Implemented: ORS 238.300 & 238.305
Hist.: PERS 10-2000, f. 12-15-00 cert. ef. 1-1-01; PERS 20-2005, f. 11-1-05, cert. ef. 11-4-05; PERS 16-2008, f. & cert. ef. 11-26-08

459-013-0280

Calculation of Variable Match

This rule will be used to determine the member's retirement allowance under the Money Match method provided for in ORS 238.300(2)(b)(A) for members that are subject to the variable annuity adjustment provided under ORS 238.260(12). To calculate these members' retirement allowance, the following process will be used:

(1) Annuity Calculation. The balance in the member's regular account will be combined with a projected balance based on what the member's variable account balance would have been had the member's contributions to the variable account been made to the regular account instead. If the member chooses a retirement allowance that includes an annuity, this combined balance will be converted to an annuity using the appropriate actuarial equivalency factor to determine that annuity.

(2) Pension Calculation. The pension provided for in ORS 238.300(2)(b)(A) will be determined by applying an actuarial equivalency factor to the combined balance determined in accordance with section (1).

(3) Variable Adjustment. The retirement allowance calculated under sections (1) and (2), as applicable, will be increased or decreased by applying an actuarial equivalency factor to the difference between the actual balance in the member's variable account on their effective retirement date and the projected balance determined under section (1) above.

(4) The provisions of this rule only apply to members who participated in the variable account program by making contributions to their variable account on or after January 1, 1982. The adjustment provided for by ORS 238.260(12) and this rule will apply only to those contributions and associated earnings after that date.

(5) In determining "the portion of the annuity payable from the Variable Annuity Account" as required by ORS 238.260(10) and (11), all of the member's variable account will be included, including the portion that is included in calculating the variable adjustment at retirement specified in ORS 238.260(12).

(6) The method described in this rule to calculate a member's allowance will also be followed to calculate the "look-back" benefit as described in section 4 of chapter 68, Oregon Laws 2003 (HB 2004). The difference in value between the member's variable and what those contributions would have earned in the regular account as of June 30, 2003 will be used as the basis for the "look-back" comparison.

(7) If a member who has a variable account elects to transfer that account balance to the regular account under ORS 238.260(14), the difference between the amount in the variable account (subject to the limitations in section (4) of this rule) and what that portion of the variable account would have been had the member instead invested solely in the regular account shall be determined as of the date of the transfer. That difference will be applied to the member's regular account as described in section (1) of this rule and also pursuant to ORS 238.260(12)(b) or (c) to increase or decrease the member's retirement allowance.

(8) The provisions of this rule are effective July 1, 2004.

[ED. NOTE: Example referenced is available from the agency.]

Stat. Auth: ORS 238.650
Stats. Implemented: ORS 238.260(12); 238.300(1) & (2)
Hist.: PERS 10-2004(Temp), f. 4-15-04 cert. ef. 7-1-04 thru 10-31-04; PERS 18-2004, f. 6-15-04, cert. ef. 7-1-04

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

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