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OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM

 

DIVISION 75

OPSRP PENSION PROGRAM

459-075-0010

Eligibility and Membership

(1) Eligibility. An employee who is employed in a qualifying position on or after August 29, 2003 by an employer participating in the OPSRP Pension Program is eligible to become a member of that program unless the employee:

(a) Has established membership in the PERS Chapter 238 Program before August 29, 2003 under the terms of ORS 238A.025 and has not terminated membership in that program under ORS 238.095;

(b) Is a judge member as defined in ORS 238.500;

(c) Elects to participate in an optional or alternative retirement plan as provided in ORS Chapters 243, 341, or 353; or

(d) Is otherwise ineligible for membership.

(2) Membership:

(a) An employee who meets the requirements in section (1) of this rule becomes a member of the OPSRP Pension Program on the first day of the calendar month following the employee's completion of a waiting period of six full calendar months of service in a qualifying position with the same participating public employer. The six full calendar months of service may not be interrupted by more than 30 consecutive working days. For the purposes of this rule, a working day is defined as a day that the employer is open for business.

(b) The waiting period begins:

(A) On the date the employee is hired, and includes the month of hire as a full calendar month, if the date of hire is the first business day of the month. For the purposes of this rule, a business day is defined as Monday through Friday when PERS is open for business;

(B) On the first day of the month following the date of hire; or

(C) On the first day of the month following the end date of an interruption of service of more than 30 consecutive working days.

(c) In the event an employee is on an official leave of absence as described in OAR 459-010-0010, the period of absence shall not constitute an interruption of the waiting period under subsection (a) of this section. The waiting period shall be extended by the length of the leave of absence.

(d) Absence from service by an educational employee during periods that the employing educational institution is not in session shall not constitute an interruption of the waiting period under subsection (a) of this section.

(3) The provisions of this rule are retroactive to November 23, 2007.

Stat. Auth.: ORS 238A.450
Stats. Implemented: ORS 238A.025, 238A.100 & OL 2007 Ch. 769
Hist.: PERS 4-2004, f. & cert. ef. 2-18-04; PERS 8-2006, f. & cert. ef. 4-5-06; PERS 17-2007, f. & cert. ef. 11-23-07; PERS 13-2008, f. & cert. ef. 7-31-08

459-075-0020

Withdrawal from OPSRP Pension Program

(1) Definitions. For the purposes of this rule:

(a) "Controlled group" means a group of employers treated as a single employer for purposes of maintaining qualified status under federal law.

(b) "Effective date of withdrawal" has the same meaning as given the term in OAR 459-005-0001(8).

(c) "Inactive member" has the same meaning given the term in ORS 238A.005.

(d) "Pension program" has the same meaning given the term in ORS 238A.005.

(2) An inactive member may withdraw from the OPSRP Pension Program under ORS 238A.120 if:

(a) The member is vested in the pension program under ORS 238A.115;

(b) The member has separated from employment with all participating employers and all employers in a controlled group with a participating employer;

(c) The member has been absent from service with all participating employers and all employers in a controlled group with a participating employer for at least one full calendar month following the month of separation;

(d) The member files with PERS a written request for withdrawal on a form acceptable to PERS;

(e) The actuarial equivalent of the member's pension benefit is $5,000 or less on the effective date of withdrawal. The actuarial equivalent may not include any value attributable to cost-of-living adjustments under ORS 238A.210; and

(f) The member complies with the requirements of section 2, chapter 52, Oregon Laws 2007.

(3) Any amount payable to the member under the provisions of this rule must be paid to the member in a single lump-sum payment.

(4) A member may revoke a request for withdrawal from the pension program if PERS receives the member's written revocation of the request before the earlier of:

(a) The date of distribution; or

(b) The date PERS receives a valid court order requiring PERS to pay the distribution to someone other than the withdrawing member.

(5) A member who withdraws from the pension program terminates membership in the pension program as of the effective date of withdrawal.

(6) A member who withdraws from the pension program forfeits any service performed by the member before the date of the separation described in subsection (2)(b) of this rule and may not use that service for any purpose including, but not limited to, establishing membership under ORS 238A.100, vesting under ORS 238A.115, and the accrual of retirement credit under ORS 238A.140, 238A.150, or 238A.155.

(7) If a former member who has withdrawn from the pension program returns to employment with a participating employer or an employer in a controlled group with a participating employer before the first day of the second calendar month following the month of the separation described in subsection (2)(b) of this rule, the withdrawal is cancelled and membership is restored. The member must repay to PERS in a single payment the total amount of all payments attributable to the withdrawal within 30 days following the effective date of the employment. Upon receipt by PERS of repayment under this section, service forfeited under section (6) of this rule is restored as of the effective date of withdrawal.

(8) If the member fails to repay as provided in section (7), PERS shall take all reasonable steps to recover the repayment amount due, including any interest, costs, or penalties assessed by PERS, under the provisions of ORS 238.715 and OAR 459-005-0610. Upon receipt by PERS of repayment under this section, service forfeited under section (6) of this rule is restored effective the first day of the month following the date of repayment.

(9) The effective date of this rule is January 1, 2008.

Stat. Auth.: ORS 238A.450
Stats. Implemented: ORS 238A.120, OL 2007 Ch. 52
Hist.: PERS 16-2007, f. & cert. ef. 11-23-07

459-075-0030

Calculation of Overtime for Purposes of Final Average Salary

(1) For purposes of calculating final average salary, a member's salary shall not include any amounts attributable to hours of overtime that exceed the average number of hours of overtime for the same employee class.

(2) The average number of hours of overtime for an employee class shall be determined by the employer based on a reasonable expectation of the average number of hours of overtime employees in that class would perform over the course of a calendar year. The employer shall maintain records of the average number of hours of overtime for each employee class for each calendar year and provide those records to PERS upon request.

(3) Under the provisions of ORS 238A.130(5) the Oregon Department of Administrative Services shall establish by rule more than one overtime average for a class of state employees based on the geographic placement of the employees.

Stat. Auth.: OL 2003 Ch. 733
Stats. Implemented: OL 2003 Ch. 733
Hist.: PERS 25-2003, f. 12-30-03 cert. ef. 1-1-04; PERS 4-2006, f. & cert. ef. 4-5-06

459-075-0060

Vesting in the OPSRP Pension Program

For the purpose of determining vesting under ORS 238A.115(1)(a):

(1) Hours of service performed for all participating public employers during a calendar year are included.

(2) Hours of service performed during the six-month period required to establish membership under ORS 238A.100 are included.

(3) For calendar years beginning on or after January 1, 2004, hours of service will be determined based on hours reported to PERS by the member’s employer(s) pursuant to OAR 459-070-0100.

(4) An eligible employee first employed by a participating public employer on or after August 29, 2003 and before January 1, 2004 is presumed to have performed less than 600 hours of service in calendar year 2003 unless records provided to PERS establish that the eligible employee performed at least 600 hours of service in the calendar year.

(5) Hours of service attributable to periods of active membership before termination of membership under ORS 238.095 and hours of service excluded under ORS 238A.120 and 238A.145 may not be included.

Stat. Auth.: ORS 238A.450
Stats. Implemented: ORS 238A.010, 238A.115
Hist.: PERS 9-2009, f. & cert. ef. 7-21-09; PERS 1-2012, f. & cert. ef. 2-1-12

459-075-0100

Credit for Military Service under USERRA

(1) Purpose. The purpose of this rule is to implement section 13, chapter 733, Oregon Laws 2003 (Enrolled HB 2020).

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

(3) Definitions. For purposes of this rule:

(a) "Employee" means an employee, as defined in OAR 459-070-0001, who:

(A) Has established membership in the pension program in accordance with section 5(1), chapter 733, Oregon Laws 2003 (Enrolled HB 2020); or

(B) Is entitled to credit toward the probationary period required by section 5(1), chapter 733, Oregon Laws 2003 (Enrolled HB 2020).

(b) "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.

(c) "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 a person is absent from a position of employment for the purpose of an examination to determine the fitness of the person to perform any of the above types of duty; or

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

(d) "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 persons designated by the President in time of war or national emergency.

(e) "USERRA" means the 1994 federal Uniformed Services Employment and Reemployment Rights Act as in effect on the effective date of this rule.

(4) Eligibility for retirement credit under USERRA. An employee shall be entitled to the benefits of this rule if:

(a) The employee leaves employment with a participating public employer 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 §4312;

(c) The employee initiates reemployment with the same participating public employer within the time limits specified in USERRA §4312; and

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

(5) Retirement credit for military service under USERRA. An employee who meets the eligibility requirements of section (4) of this rule shall receive the amount of credit toward the period of employment required under section 29, chapter 733, Oregon Laws 2003 (Enrolled House Bill 2020), and the vesting requirements described under section 31, chapter 733, Oregon Laws 2003 (Enrolled House Bill 2020), as well as the retirement credit the employee would have accrued if he or she had remained in employment with the employer during the period of military service.

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

(7) Employer contributions. Any employer contributions associated with credit for military service under this rule shall be made as directed by PERS in accordance with section 24, chapter 733, Oregon Laws 2003 (Enrolled HB 2020).

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

Stat. Auth.: OL 2003 Ch. 733
Stats. Implemented: OL 2003 Ch. 733; USERRA §4312
Hist.: PERS 3-2004, f. & cert. ef. 1-22-04 Hist.: PERS 25-2003, f. 12-30-03 cert. ef. 1-1-04

459-075-0150

Retirement Credit

(1) For purposes of this rule:

(a) “Active member” has the same meaning as provided in ORS 238A.005.

(b) “Major fraction of a month” means a minimum of 50 hours in any calendar month in which an active member is being paid a salary by a participating public employer and for which benefits under ORS Chapter 238A are funded by employer contributions.

(2) Except as provided in OAR 459-010-0010(3), an active member accrues one month of retirement credit for each month in which the member performs service for the major fraction of the month.

(3) An active member is presumed to have performed service for a major fraction of a month if:

(a) The member performs at least 600 hours of service in the calendar year and the member’s employer(s) reports salary and hours for a pay period occurring within the calendar month;

(b) The member starts employment on or before the 15th day of the calendar month and the employment continues through the end of the month;

(c) The member starts employment on or before the first day of the calendar month and ends employment on or after the 16th day of the month; or

(d) The member starts employment on or before the first day of the calendar month and ends employment before the 16th day of the month, but is reemployed in a qualifying position before the end of the month.

(4) A member or employer may seek to rebut the determination of creditable service based on the presumptions in section (3) by providing to PERS records that establish that the member did or did not perform service for a major fraction of a month as defined in subsection (1)(c) of this rule.

(5) Except as provided in OAR 459-010-0010(3), an active member who is a school employee will accrue six months of retirement credit if the member performs service for a major fraction of each month of a school year that falls between January 1 and June 30, and six months of creditable service if the member performs service for a major fraction of each month of a school year that falls between July 1 and December 31.

(6) A member may not accrue more than one month of retirement credit for any calendar month and no more than one year of retirement credit for any calendar year.

(7) Credit for the six-month waiting period required by OAR 459-075-0010(2).

(a) Upon establishing membership in the pension program, a member shall receive credit for the waiting period required to establish membership under OAR 459-075-0010(2).

(b) If the member’s waiting period before establishment of membership included an interruption of service as described in OAR 459-075-0010(2)(b), no credit shall be awarded for the period of employment before the interruption.

(8) The provisions of this rule are effective for retirement credit determinations made on or after January 1, 2008.

Stat. Auth.: ORS 238A.450
Stats. Implemented: ORS 238A.140
Hist.: PERS 6-2004, f. & cert. ef. 2-18-04; PERS 17-2007, f. & cert. ef. 11-23-07; PERS 3-2010, f. & cert. ef. 5-28-10

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

459-075-0175

Effective Date Used in the Establishment of OPSRP Pension Program Benefits

(1) A member’s OPSRP pension program benefits under ORS 238A.125 and 238A.180 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 238A.160 to 238A.170, 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 238A.450
Stats. Implemented: ORS 238A.125 & 238A.180
Hist.: PERS 16-2008, f. & cert. ef. 11-26-08

459-075-0200

Retirement Eligibility for Police Officer and Firefighter Members

(1) For purposes of this rule:

(a) “Police officer” and “firefighter” have the same meaning given them in ORS 238A.005.

(b) “Continuously” means a period of employment during which the member accrues retirement credit in consecutive months without interruption.

(2) For the purpose of establishing eligibility for normal retirement under ORS 238A.160(2) and early retirement under 238A.165(2), an OPSRP Pension Program member will be considered to have held a position as a police officer or firefighter continuously for a period of not less than five years immediately preceding the effective date of retirement if:

(a) The member was employed in a qualifying position as a police officer or firefighter continuously for five years prior to the date of the member’s termination from that employment; and

(b) The member’s effective date of retirement is the first of the month following termination from that employment.

(3) A member who is concurrently employed by two or more employers in qualifying positions as a police officer or firefighter and as other than a police officer or firefighter is employed as a police officer or firefighter for purposes of this rule.

Stat. Auth.: ORS 238A.450
Stats. Implemented: 238A.160 & 238A.165
Hist.: PERS 15-2006, f. & cert. ef. 10-25-06; PERS 4-2013, f. & cert. ef. 3-29-13

459-075-0300

Reemployment of a Retired Member of the OPSRP Pension Program

(1) If a retired member of the OPSRP Pension Program who is receiving monthly pension payments is employed by a participating public employer in a qualifying position:

(a) The member’s retirement is canceled effective the first of the month in which the member was employed.

(b) The last pension payment the member is entitled to receive is for the month before the calendar month in which the member was employed. A member who receives benefits to which he or she is not entitled must repay those benefits to PERS.

(c) The member reestablishes active membership effective the date the member was employed.

(2) If a retired member of the OPSRP Pension Program who received a lump sum benefit in lieu of a small pension under ORS 238A.195 is employed by a participating public employer in a qualifying position, the member reestablishes active membership effective the date of employment.

(a) If the member was employed after the date of the payment, the member is not required or permitted to repay the benefit amount.

(b) If the member was employed on or before the date of the payment, the member must repay the gross benefit amount.

(3) A retired member of the OPSRP Pension Program who is employed by a participating public employer in a non-qualifying position may receive pension payments or a lump sum payment under ORS 238A.195 without affecting the member’s status as a retired member.

(a) If, by reason of hours of service performed by the retired member, the non-qualifying position becomes qualifying in a calendar year, the position is qualifying effective the later of the first day of the calendar year or the date the member was employed.

(b) If a position becomes qualifying under subsection (a) of this section, the retired member is subject to the provisions of sections (1) and (2) of this rule.

(4) A retired member who reestablishes active membership may, at subsequent retirement, elect any option provided in ORS 238A.180 and 238A.190, subject to the provisions of ORS 238A.195.

(a) The member’s subsequent retirement benefit will be calculated based on the member’s periods of active membership before and after the member’s initial effective retirement date if at the initial retirement:

(A) The member received a monthly pension; or

(B) The member received a lump sum payment under ORS 238A.195 and repaid the benefit amount under subsection (2)(b) of this rule.

(b) The member’s subsequent retirement benefit will be calculated based on the member’s periods of active membership after the member’s initial effective retirement date if:

(A) At initial retirement, the member received a lump sum payment under ORS 238A.195 and was not required to repay the benefit amount under subsection (2)(b) of this rule; or

(B) The member is required to repay the benefit amount under subsection (2)(b) of this rule and, as of the effective retirement date of the member’s subsequent retirement, the member has not repaid the benefit amount.

(c) The member’s subsequent retirement benefit will be calculated using the actuarial equivalency factors in effect on the effective retirement date of the subsequent retirement.

Stat. Auth.: ORS 238A.450
Stats. Implemented: ORS 238A.245
Hist.: PERS 10-2009, f. & cert. ef. 7-21-09

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