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OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM

 

DIVISION 45

DOMESTIC RELATIONS ORDERS

459-045-0001

Definitions

The words and phrases used in this division have the same meaning given them in ORS Chapters 238 and 238A. Specific and additional terms for purposes of this division are defined as follows unless context requires otherwise.

(1) “Administrable” means that the language in a final court order that outlines an alternate payee award can be administered within the provisions of ORS Chapters 238, 238A, and this division.

(2) “Alternate payee” means the recipient of an award of a portion or all of a PERS member’s account(s) or benefits as provided for in the terms of any judgment of annulment, dissolution of marriage, dissolution of registered domestic partnership, or separation, or the terms of any court order or court-approved property settlement agreement incident to any judgment of annulment, dissolution of marriage, dissolution of registered domestic partnership, or separation.

(3) “Alternate payee account” means a court-ordered separate account created under ORS 238.465 in the name of an alternate payee.

(4) “Alternate payee release” means a written statement that is signed by the alternate payee and received by PERS authorizing the release of information, and directing to whom and where the information is to be sent pertaining to:

(a) The alternate payee’s interest in the member’s account(s) or member’s vested interest in the Fund;

(b) The alternate payee’s account and benefit information if a separate account has been created in the name of the alternate payee;

(c) Benefit information applicable to either subsection (a) or (b) of this section; and

(d) Award information contained in any draft or final court order in regard to the alternate payee on record with PERS.

(5) “Award” means the portion of a member’s account(s) or of the member’s benefits under ORS Chapter 238 or 238A awarded to an alternate payee by a final court order.

(6) “Court order” means a court decree or judgment of annulment, dissolution of marriage, dissolution of registered domestic partnership, or separation, or the terms of any court order or court-approved property settlement agreement incident to any judgment of annulment, dissolution of marriage, dissolution of registered domestic partnership, or separation, which includes the content of any PERS divorce forms attached as exhibits.

(7) “Deduction” means an alternate payee’s award is subtracted from the member’s benefit(s) after tax.

(8) “Draft court order” means an order for dividing a PERS account(s) or benefits that has been prepared but not approved or signed by the court or filed with the court clerk, which includes the content of any PERS divorce forms attached as exhibits.

(9) “Final court order” means a court order that has been signed by a judge and shows the stamp of the court clerk or trial court administrator indicating the order is a certified copy of the original record that is on file with the court.

(10) “Joint and survivor annuity” means any retirement annuity option under which a monthly lifetime annuity is payable to a surviving beneficiary of a member.

(11) “Married time ratio” means the fraction in which the numerator is the years and months of creditable service time or retirement credit accrued by the member during a specified period or while married to or in a registered domestic partnership with the alternate payee as provided in the court order and the denominator is the member’s total creditable service time or retirement credit accrued by the member at the time of retirement.

(12) “Member” means a person described in ORS 238.005, 238.500(3), or 238A.005, who is the current or former spouse or partner of an alternate payee.

(13) “Member release” means a written statement that is signed by a member and received by PERS authorizing the release of information, and directing to whom and where information is to be sent pertaining to:

(a) The member’s account(s);

(b) The member’s interest in the Fund;

(c) Benefit information applicable to either subsection (a) or (b) of this section; and

(d) Award information contained in any draft or final court order in regard to the member on record with PERS.

(14) “Partner” has the same meaning as defined in ORS 106.310(2)

(15) “PERS divorce forms” means the forms provided by PERS that must be completed to describe a court order’s provisions relating to administration of a member’s benefit that is subject to that order.

(16) “Reduction” means an alternate payee’s award is subtracted from the member’s benefit(s) before tax.

(17) “Registered domestic partnership” has the same meaning as domestic partnership as defined in ORS 106.310(1).

Stat. Auth.: ORS 238.465, 238.650 & 238A.450
Stats. Implemented: ORS 238.465
Hist.: PERS 5-1996, f. & cert. ef. 6-11-96; PERS 3-2003(Temp), f. 6-13-03, cert. ef. 7-1-03 thru 12-26-03; PERS 14-2003, f. & cert. ef. 11-20-03; PERS 19-2005, f. 11-1-05, cert. ef. 1-1-06; PERS 4-2010, f. & cert. ef. 5-28-10

459-045-0010

Tier One/Tier Two Division of Benefits

(1) A final court order that provides for a division of benefits must use a method described in this rule.

(a) The method must be identified on PERS divorce forms.

(b) The PERS divorce forms must be attached as exhibits to the court order, and incorporated by reference in the court order.

(2) Award of Alternate Payee Account (Non-Retired Member). If a final court order provides an award of an alternate payee account, the court order must provide:

(a) The date of annulment, separation, divorce, or property settlement. If no date is provided, PERS will use the date the judge signed the court order. The separate account will be established as of December 31 of the calendar year before this date unless:

(A) A prior year is provided in the court order; or

(B) The date is December 31.

(b) That a separate account be established in an alternate payee’s name.

(c) The method by which the award is to be calculated. One of the following methods must be used:

(A) A percentage, expressed with up to two decimal points; or

(B) A dollar amount.

(d) Whether an alternate payee is awarded matching employer dollars.

(e) That an alternate payee may elect to receive the award at any time after the member’s earliest retirement eligibility.

(3) Award of Payment from Member’s Benefit (Non-Retired Member). If a final court order awards an alternate payee a reduction or deduction amount from the service or disability retirement benefit that shall be paid in the future to the member, the court order must provide:

(a) The date of annulment, separation, divorce, or property settlement. If no date is provided, PERS will use the date the judge signed the court order.

(b) Whether the award is a reduction or deduction from the member’s benefit. If the award is a reduction, the court order must provide whether the alternate payee is eligible to elect a separate benefit option at any time after the member reaches earliest retirement eligibility.

(c) The benefit division calculation method that is applied to both the monthly, and if applicable, lump sum award. One of the following calculation methods must be used:

(A) A percentage, expressed with up to two decimal points;

(B) A dollar amount; or

(C) A percentage of the married time ratio. The court order must provide:

(i) The percentage, expressed with up to two decimal points; and

(ii) The years and months of creditable service time accrued by the member during a specified period or while married to the alternate payee.

(d) If there is a specific end date or dollar amount limit to the award, and what that date or limit is.

(e) Whether the award applies to service retirement benefits, disability retirement benefits, or withdrawal benefits.

(f) Whether the member is restricted from withdrawing as a member under ORS 238.265.

(g) Whether the member must select a specific benefit payment option at retirement.

(h) Whether the member is required to designate the alternate payee as a beneficiary:

(A) Before retirement; or

(B) At retirement.

(i) Whether an alternate payee award continues after the death of:

(A) The member; or

(B) The alternate payee.

(4) Award of Benefit (Retired Member). If a final court order awards an alternate payee an amount payable from a retired member’s service or disability retirement benefit, the court order must provide:

(a) The date of annulment, separation, divorce, or property settlement. If no date is provided, PERS will use the date the judge signed the court order.

(b) Whether an alternate payee award is a reduction or deduction from the member’s monthly benefit, and if applicable, lump sum.

(c) The benefit division calculation method that is applied to both the monthly, and if applicable, lump sum award. One of the following calculation methods must be used:

(A) A percentage, expressed with up to two decimal points; or

(B) A dollar amount.

(d) If there is a specific end date or dollar amount limit to the award, and what that date or limit is.

(e) Whether the member may or must change their beneficiary designation. If the member’s beneficiary designation is changed, the member’s monthly benefit must be recalculated.

(f) Whether a member who elected Option 2A or 3A under ORS 238.305(1) is allowed to receive the Option 1 benefit under ORS 238.305(6).

(g) Whether an alternate payee award continues after the death of:

(A) The member; or

(B) The alternate payee.

Stat. Auth.: ORS 238.465 & 238.650
Stats. Implemented: ORS 238.465
Hist.: PERS 5-1996, f. & cert. ef. 6-11-96; PERS 21-2005, f. & cert. ef. 11-1-05; PERS 4-2010, f. & cert. ef. 5-28-10; PERS 11-2013, f. & cert. ef. 11-22-13

459-045-0012

OPSRP Pension Program Division of Benefits

(1) A final court order that provides for a division of pension benefits or disability benefits must use a method described in this rule.

(a) The method must be identified on PERS divorce forms.

(b) The PERS divorce forms must be attached as exhibits to the court order, and incorporated by reference in the court order.

(2) Award of Pension Benefits (Non-Retired Member). If a final court order awards an alternate payee a reduction or deduction amount from the monthly pension benefit that shall be paid in the future to the member, a court order must provide:

(a) The date of annulment, separation, divorce, or property settlement. If no date is provided, PERS will use the date the judge signed the court order.

(b) Whether the award is a reduction or deduction from the member’s monthly pension. If the award is a reduction, the court order must provide whether the alternate payee is eligible to elect a separate benefit option at any time after the member reaches earliest retirement eligibility.

(c) The method by which the monthly award is to be calculated. One of the following methods must be used:

(A) A percentage, expressed with up to two decimal points; or

(B) A dollar amount; or

(C) A percentage of the married time ratio. If this method is used, the court order must provide:

(i) The percentage, expressed with up to two decimal points; and

(ii) The years and months of retirement credit accrued by the member during a specified period or while married to the alternate payee.

(d) If there is a specific end date or dollar amount limit to the award, and what that date or limit is.

(e) Whether the member must select a specific benefit payment option at retirement.

(f) Whether the member must designate the alternate payee as beneficiary.

(g) Whether the alternate payee and any minor children are awarded a percentage of any pre-retirement death benefit pursuant to ORS 238A.230.

(h) Whether the alternate payee award continues or ends after the member retires if:

(A) The member dies before the alternate payee and the member’s beneficiary is not the alternate payee.

(B) If the alternate payee dies before the member.

(3) Award of Pension Benefits (Retired Member). If a final court order awards an alternate payee an amount to be paid from a retired member’s monthly pension, the court order must provide:

(a) The date of annulment, separation, divorce, or property settlement. If no date is provided, PERS will use the date the judge signed the court order.

(b) Whether the award is a reduction or deduction from the member’s monthly pension.

(c) The method by which the monthly award is to be calculated. One of the following methods must be used:

(A) A percentage, expressed with up to two decimal points; or

(B) A dollar amount.

(d) If there is a specific end date or dollar amount limit to the award, and what that date or limit is.

(e) Whether the member may or must change the beneficiary designation. If the member’s beneficiary is changed, the member’s pension must be recalculated.

(f) Whether a member, who elected to receive their pension under ORS 238A.190(1)(b) or (d), is allowed to receive the higher pension benefit under ORS 238A.190(2)(b).

(g) Whether the alternate payee will be the sole beneficiary or any remaining share not awarded to the alternate payee shall be paid to the member’s secondary beneficiary if the member dies before the alternate payee and the alternate payee was the member’s beneficiary.

(h) Whether an alternate payee award continues or ends if:

(A) The member dies before the alternate payee and the member’s beneficiary is not the alternate payee.

(B) The alternate payee dies before the member.

(4) Award of Disability Benefits. If a final court order awards an alternate payee an amount to be paid from the monthly disability benefit that is being paid or may be paid in the future to the member, the court order must provide:

(a) The date of annulment, separation, divorce, or property settlement. If no date is provided, PERS will use the date the judge signed the court order.

(b) Whether the award is a reduction or deduction from the member’s monthly disability benefit.

(c) A percentage, expressed with up to two decimal points, of the member’s monthly disability benefit that is awarded to the alternate payee.

Stat. Auth.: ORS 238.465, 238.650 & 238A.450
Stats. Implemented: ORS 238.465
PERS 4-2010, f. & cert. ef. 5-28-10

459-045-0014

Individual Account Program (IAP) Division of Benefits

(1) A final court order that provides for a division of benefits must use a method described in this rule.

(a) The method must be identified on PERS divorce forms.

(b) The PERS divorce forms must be attached as exhibits to the court order, and incorporated by reference in the court order.

(2) Award of IAP Alternate Payee Account (Non-Retired Member). If a final court order provides an award of an alternate payee account to be established from the account balance of a member, the court order must provide:

(a) The date of annulment, separation, divorce, or property settlement. If no date is provided, PERS will use the date the judge signed the court order.

(A) The separate account will be established from the member’s account balance as of December 31 of the calendar year before this date unless:

(i) A prior year is provided in the court order; or

(ii) The date is December 31.

(B) If the date in subsection (a) of this section is other than December 31, contributions made during that calendar year will not be included in the calculation of the alternate payee’s award.

(b) That the separate account be established in an alternate payee’s name.

(c) The method by which the award is to be calculated. One of the following methods must be used:

(A) A percentage, expressed with up to two decimal points; or

(B) A dollar amount.

(d) Whether the member may change their pre-retirement beneficiary designation, if the alternate payee was named as beneficiary.

(3) Award of IAP Alternate Payee Account (Retired Member). If a final court order provides an award of an alternate payee account to be established from the remaining account balance of a retired member receiving installment payments, to be effective on the date that PERS establishes the alternate payee account, the court order must provide:

(a) The date of annulment, separation, divorce, or property settlement. If no date is provided, PERS will use the date the judge signed the court order.

(b) That a separate account be established in an alternate payee’s name.

(A) The effective date of the alternate payee account shall be as soon as administratively feasible after PERS receives and approves a final court order as administrable.

(B) The alternate payee will be notified when the account has been established.

(C) The alternate payee account shall be distributed in a lump sum payment.

(D) Any installment payments paid to the member before the alternate payee account is established will not be included in the award.

(c) The award as a percentage, expressed with up to two decimal points.

(d) Whether the member may or must change their beneficiary designation.

Stat. Auth.: ORS 238.465, 238.650 & 238A.450
Stats. Implemented: ORS 238.465
Hist.: PERS 4-2010, f. & cert. ef. 5-28-10

459-045-0020

Court Orders

(1) A final court order must be received by PERS and approved as administrable before an alternate payee award can be established.

(a) PERS shall provide a written response as to whether a final court order is administrable to the member, the alternate payee, and their attorneys.

(b) Award information shall be provided to attorneys or other representatives of a member or an alternate payee only if a member release or an alternate payee release has been received by PERS.

(2) In the absence of a final court order, a restraining order or stay must be filed with PERS to prevent the distribution of any funds to a member.

(3) PERS shall establish an alternate payee award from a retired member’s monthly benefit as soon as administratively feasible on a prospective basis only. Court orders that purport to award retroactive benefits or benefits to be paid before the final court order was received by PERS cannot be administered.

(4) If a final court order is received by PERS after a member has withdrawn from PERS under ORS 238.265, 238.545, 238A.120 or 238A.375, the final court order will be rejected as unadministrable.

Stat. Auth: ORS 238.465, 238.650 & 238A.450
Stats. Implemented: ORS 238.465
Hist.: PERS 5-1996, f. & cert. ef. 6-11-96; PERS 4-2010, f. & cert. ef. 5-28-10

459-045-0030

General Administration for Chapter 238 Tier One/Tier Two

(1) Alternate payee account.

(a) A percentage award will be applied against the member’s regular account and if applicable, Variable Annuity Account. A dollar award will be applied proportionately against the member’s regular account and if applicable, Variable Annuity Account.

(A) Once the amount of an alternate payee’s award is determined, funds will be transferred to an alternate payee account.

(B) An alternate payee may not participate in the Variable Annuity Account program.

(C) Earnings and losses on the alternate payee’s account will be based on regular account earning rates in accordance with OAR chapter 459, division 007 after the transfer.

(b) At the time of the alternate payee’s death, if the provisions of ORS 238.395 are met by the member, the alternate payee’s beneficiary will receive matching employer dollars regardless of whether a final court order awarded matching employer dollars.

(c) An alternate payee is not entitled to matching employer dollars if the alternate payee elects to receive the award in the form of a withdrawal, regardless of whether a final court order awarded matching employer dollars.

(d) At retirement, an alternate payee may elect one of the following benefit payment options, as described in ORS 238.305:

(A) Refund Annuity.

(B) Option 1.

(C) Option 4 (15 Year Certain).

(D) Lump-sum Option 1.

(E) Total lump-sum option.

(e) An alternate payee has 60 days from the date of the first actual, not estimated, payment to change the retirement option, except that the designation of beneficiary under the Refund Annuity or Option 4 (15 Year Certain) may be changed at any time before an alternate payee's death.

(f) An alternate payee whose total benefit is less than $200 per month under Option 1 shall receive a one time lump-sum payment as provided under ORS 238.315.

(2) If a retired member changes the beneficiary designation pursuant to a final court order, the member’s monthly benefit must be recalculated.

(a) The benefit recalculation shall be effective the first of the month after the month in which PERS receives a written request from the member to change beneficiary.

(b) The request must provide the full name, a copy of proof of birth, and the relationship of the new beneficiary to the member.

(3) If a final court order provides that a retired member may elect to receive the Option 1 benefit pursuant to ORS 238.305(6), in order to make that election the member must submit a written request to PERS.

(4) A member is released from a court ordered benefit payment option:

(a) If the alternate payee award is a reduction, and

(b) The alternate payee is eligible to elect a separate benefit option at any time after the member’s earliest retirement eligibility and elects to do so.

(5)(a) PERS shall provide to the alternate payee a written summary of the information used in calculating the alternate payee’s retirement allowance or benefit. An alternate payee may dispute the accuracy of the information used in making the calculation of the retirement allowance or benefit by filing a written notice by the later of:

(A) The 30th day after the date on which the calculation and information is provided to the alternate payee; or

(B) The 30th day after the issue date of the first actual, not estimated, payment of a retirement allowance or benefit to the alternate payee.

(b) Upon receiving a notice described above, PERS shall determine the accuracy of the disputed information and make a written decision either affirming the accuracy of the original information and calculation or changing the calculation using corrected information. PERS shall provide the alternate payee a copy of the decision and a written explanation of any applicable statutes and rules.

(c) The filing of a notice under this section extends the time allowed for election of an optional form of retirement allowance or benefit until the 30th day after the conclusion of the dispute proceeding or review results in a change in the calculation of the retirement allowance or benefit.

(d) This section does not limit any authority of PERS to correct an incorrect calculation of any retirement allowance or benefit.

(6) If an alternate payee was a partner of the member, the award to the alternate payee is a distribution to the member for federal tax purposes. Therefore:

(a) An award of a monthly benefit amount as described in OAR 459-045-0010(3)(b) and (4)(b) is only administrable as a deduction from the member’s monthly payment.

(b) An award of an alternate payee account as described in OAR 459-045-0010(2) will not be distributed until such distribution would not jeopardize the plan’s tax qualified status.

Stat. Auth.: ORS 238.465 & 238.650
Stats. Implemented: ORS 238.450, 238.465
Hist.: PERS 5-1996, f. & cert. ef. 6-11-96; PERS 17-2004, f. 6-15-04 cert. ef. 7-1-04; PERS 14-2005, f.& cert. ef. 8-18-05; PERS 19-2007, f. & cert. ef. 11-23-07; PERS 4-2010, f. & cert. ef. 5-28-10

459-045-0032

General Administration for OPSRP Pension Program

(1) If a retired member changes the beneficiary designation pursuant to a final court order, the member’s monthly benefit must be recalculated.

(a) The benefit recalculation shall be effective the first of the month after the month in which PERS receives a written request from the member to change beneficiary.

(b) The request must provide the full name, a copy of proof of birth, and the relationship of the new beneficiary to the member.

(2) If a final court order provides that a retired member may elect to receive the higher benefit pursuant to ORS 238A.190(2), in order to make that election the member must submit a written request to PERS.

(3) A member is released from a court ordered benefit payment option:

(a) If the alternate payee award is a reduction, and

(b) The alternate payee is eligible to elect a separate benefit option at any time after the member’s earliest retirement eligibility and elects to do so on or before the member’s effective retirement date.

(4) An alternate payee award of a member’s disability benefit must end when the member is no longer eligible for a disability benefit pursuant to ORS 238A.235(4).

(5) An alternate payee award of a pre-retirement death benefit is payable only if, at the time of the member’s death, a benefit would be otherwise payable under ORS 238A.230(1).

(6)(a) PERS shall provide to the alternate payee a written summary of the information used in calculating the alternate payee’s pension or benefit. An alternate payee may dispute the accuracy of the information used in making the calculation by filing a written notice with PERS by the later of:

(A) The 30th day after the date on which the calculation and information is provided to the alternate payee under this section; or

(B) The 30th day after the issue date of the first actual, not estimated, payment of a pension or benefit to the alternate payee.

(b) Upon receiving a notice as described above, PERS shall determine the accuracy of the disputed information and make a written decision either affirming the accuracy of the original information and calculation or changing the calculation using corrected information. PERS shall provide the alternate payee a copy of the decision and a written explanation of any applicable statutes and rules.

(c) This section does not limit any authority of PERS to correct an incorrect computation of any retirement allowance or benefit.

(7) If an alternate payee was a partner of the member, the award to the alternate payee is a distribution to the member for federal tax purposes. Therefore an award of a monthly benefit amount as described in OAR 459-045-0012(2)(b), (3)(b), and (4)(b) is only administrable as a deduction from the member’s monthly payment.

Stat. Auth.: ORS 238.465 & 238A.450
Stats. Implemented: ORS 238.450, 238.465, 238A.450
Hist.: PERS 4-2010, f. & cert. ef. 5-28-10

459-045-0034

General Administration for Individual Account Program (IAP)

(1) A percentage award will be applied against the member’s account(s) to the extent the member is vested in the account(s). A dollar amount will be applied on a pro-rata basis against the member’s account(s) to the extent the member is vested in the account(s).

(2) An alternate payee account shall be credited with earnings and losses in accordance with OAR chapter 459, division 007.

(3)(a) At the time of distribution to the alternate payee, PERS shall provide the alternate payee a written summary of the information used in making the calculation for the distribution of benefits. An alternate payee may dispute the accuracy of the information used in making the calculation of the distribution of benefits by filing a written notice with PERS by the later of:

(A) The 30th day after the date on which the information and calculation is provided to the alternate payee under this section; or

(B) The 30th day after the issue date of the first distribution of benefits to the alternate payee.

(b) Upon receiving a notice as described above, PERS shall determine the accuracy of the disputed information and make a written decision either affirming the accuracy of the original information and calculation or changing the calculation using corrected information. PERS shall provide the alternate payee with a copy of the decision and a written explanation of any applicable statutes and rules.

(c) This section does not limit any authority of PERS to correct an incorrect calculation of any benefit.

(4) If an alternate payee was a partner of the member, the award to the alternate payee is a distribution to the member for federal tax purposes. Therefore, an award of an alternate payee account as described in OAR 459-045-0014(2) and (3) will not be distributed until such distribution would not jeopardize the plan’s tax qualified status.

Stat. Auth.: ORS 238.465, 238.650 & 238A.450
Stats. Implemented: ORS 238.465 & 238A.450
Hist.: PERS 4-2010, f. & cert. ef. 5-28-10

459-045-0040

Requesting Information from PERS

(1) PERS may not provide member information or alternate payee information to anyone other then the member or alternate payee respectively, including representatives of the member or alternate payee, unless PERS receives:

(a) A member release.

(b) An alternate payee release.

(c) A judicial order, subpoena, or administrative order pursuant to OAR 459-060-0030.

(2) A subpoena must be made out to the Oregon Public Employees Retirement System and served at PERS Tigard Headquarters. Faxed subpoenas will not be accepted. PERS reserves the right to object to any subpoena for reasons that include but are not limited to:

(a) The subpoena fails to provide a reasonable time for preparation and travel.

(b) The subpoena is otherwise unreasonable or oppressive.

(c) That service was improper.

(3) An alternate payee with a final court order that has been received and approved as administrable by PERS may submit a written request for an estimate under the provisions of OAR 459-005-0250(1).

Stat. Auth: ORS 238.465, 238.650, & 238A.450
Stats. Implemented: ORS 238.465
Hist.: PERS 5-1996, f. & cert. ef. 6-11-96; PERS 10-2003, f. & cert. ef. 8-4-03; PERS 4-2010, f. & cert. ef. 5-28-10

459-045-0050

Filing Requirements For Alternate Payees

(1) An alternate payee must apply for benefits on PERS forms.

(2) An application for benefits must be accompanied by a final court order that is administrable by PERS, unless an administrable final court order is already on file with PERS.

(3)(a) An alternate payee’s effective retirement date is the later of:

(A) The first day of the calendar month specified on the alternate payee’s retirement application; or

(B) The first day of the calendar month following the date an application was received by PERS.

(b) If a final court order allows the alternate payee to commence benefits under ORS 238.465(2)(a), the effective retirement date can be no earlier than the first of the month following the month in which the member reaches earliest retirement eligibility.

(4) A request to cancel an application for benefits must be:

(a) In writing;

(b) Signed by the alternate payee; and

(c) Received by PERS no later than the day before the issue date of the first payment.

(5) An alternate payee may not apply for alternate payee benefits due to his or her own disability.

(6) Alternate payees must keep PERS informed of their current mailing address at all times. A change of mailing address must be submitted to PERS in writing and signed by the alternate payee.

Stat. Auth.: ORS 238.465, 238.650 & 238A.450
Stats. Implemented: ORS 238.465
Hist.: PERS 5-1996, f. & cert. ef. 6-11-96; PERS 4-2010, f. & cert. ef. 5-28-10

459-045-0060

General Rules for Calculating Benefits

(1) If an alternate payee award is a reduction and the alternate payee elects to begin receiving their benefit before the member retires, the calculation of the alternate payee benefit:

(a) Must use creditable service or retirement credit accrued by the member as of the alternate payee’s effective retirement date.

(b) May not include any potential increase attributable to unused sick leave under ORS 238.350 or voluntary purchases of retirement credit.

(2) Benefit payments to either the member or the alternate payee, or to both simultaneously, that exceed the allowable limits set forth in Section 415 of the Internal Revenue Code (IRC) shall be deducted from the benefit payment(s) to the member or the alternate payee, or both. Unless a final court order specifies the allocation of the deduction for benefits that exceed the limits in IRC Section 415, PERS shall pro rate the amount that exceeded those limits in the same proportions that benefits were awarded to the member and the alternate payee as specified in a final court order.

(3) If PERS determines that an alternate payee has received benefits in excess of the amount to which the alternate payee is entitled, PERS shall recover any overpayment in accordance with ORS 238.715.

(4) Payment of benefits under this division must not jeopardize the status of the programs as a tax-qualified governmental plan.

Stat. Auth.: ORS 238.465, 238.650 & 238A.450
Stats. Implemented: ORS 238.465
Hist.: PERS 5-1996, f. & cert. ef. 6-11-96; PERS 4-2010, f. & cert. ef. 5-28-10

459-045-0080

PERS Notifications

(1) PERS is separate from other public employer retirement plans and deferred compensation plans, and notification to other plans does not constitute notice to PERS. PERS is not responsible for notifying other plans of member or alternate payee changes in address, changes in eligibility, application for benefits, or death.

(2) PERS shall send a written notification acknowledging receipt of a final court order to the submitting party. PERS shall send a copy of the acknowledgment to the other persons named in the court order only if those persons’ mailing addresses are provided to PERS.

(3) PERS will notify an alternate payee of an event described in ORS 238.465(2)(a)(B), unless the alternate payee has already commenced receiving alternate payee benefits.

(4) PERS shall issue the applicable tax reporting forms directly to the recipient of any funds that are issued by PERS pursuant to a final court order.

(5) PERS shall notify the member or the alternate payee, or both, of any benefit payments that are reduced by PERS pursuant to Section 415 of the Internal Revenue Code.

Stat. Auth.: ORS 238.465, 238.650 & 238A.450
Stats. Implemented: ORS 238.465
Hist.: PERS 5-1996, f. & cert. ef. 6-11-96; PERS 4-2010, f. & cert. ef. 5-28-10

459-045-0090

PERS Administrative Fee

The Board has determined that actual and reasonable administrative expenses incurred by PERS for obtaining data and making calculations to administer an alternate payee award will always exceed $300.00. At the time of benefit payment, PERS shall allocate the administrative fee under the provisions of ORS 238.465(9).

Stat. Auth.: ORS 238.465, 238.650 & 238A.450
Stats. Implemented: ORS 238.465
Hist.: PERS 5-1996, f. & cert. ef. 6-11-96; PERS 4-2010, f. & cert. ef. 5-28-10

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