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

 

DIVISION 80

OPSRP INDIVIDUAL ACCOUNT PROGRAM

459-080-0010

Membership

(1) An employee who is eligible for membership in the pension program under OAR 459-075-0010 becomes a member of the individual account program on the same date the employee becomes a member of the pension program.

(2) An employee who was an active or inactive member of PERS on August 28, 2003, and retains membership in PERS through January 1, 2004, becomes a member of the individual account program on January 1, 2004.

(3) An employee who performed a period of service before August 29, 2003, that was credited to the six-month period required under ORS 238.015 for membership in PERS becomes a member of the individual account program on the date the employee becomes a member of PERS, or January 1, 2004, whichever is later.

(4) An employee may become a member of the individual account program as provided in ORS 238A.300(2)

Stat. Auth.: ORS 238A.450
Stats. Implemented: ORS 238A.300, 238A.305 & OL 2011 Ch. 722
Hist.: PERS 21-2003, f. 12-15-03 cert. ef. 1-1-04; PERS 1-2012, f. & cert. ef. 2-1-12

459-080-0020

Withdrawal of Individual Accounts

(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(8).

(d) "Individual account program" has the same meaning given the term in ORS 238A.005(9).

(e) "Individual accounts" means the employee account, rollover account, and employer account of a member of the Individual Account Program (IAP) to the extent the member is vested in those accounts under ORS 238A.320.

(2) An inactive member may withdraw the individual accounts under ORS 238A.375 if:

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

(b) 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;

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

(d) The member complies with the requirements of section 3, chapter 52, Oregon Laws 2007.

(3) A member may revoke a request for withdrawal of the individual accounts 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.

(4) A member who withdraws the individual accounts terminates membership in the IAP as of the effective date of withdrawal.

(5) An employer account not included in the withdrawn individual accounts by reason of the member's failure to vest in the employer account is permanently forfeited as of the date of distribution.

(6) A member who withdraws the individual accounts and is subsequently employed with a participating employer forfeits any service performed by the member before the separation described in subsection (2)(a) of this rule for the purpose of vesting in an employer account.

(7) If a former member who has withdrawn the individual accounts 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)(a) 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, account(s) forfeited under section (5) and service forfeited under section (6) of this rule are restored effective the date of distribution. The repayment amount received will be credited pro rata to the accounts from which the withdrawal amount was derived.

(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, account(s) forfeited under section (5) of this rule, and service forfeited under section (6) of this rule are restored effective the first day of the month following the date of repayment. The repayment amount received will be credited pro rata to the accounts from which the withdrawal amount was derived 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.375 & OL 2007 Ch. 52
Hist.: PERS 16-2007, f. & cert. ef. 11-23-07

459-080-0050

IAP Employer Account Contributions

(1) Employers shall not begin employer contributions under ORS 238A.340 to the employer account of a member under the OPSRP Individual Account Program (IAP) until the agreement by which those contributions will be made has been provided to PERS. The agreement must, at a minimum, provide the following information:

(a) The date those contributions are to commence; and

(b) The percentage of salary to be contributed.

(2) ORS 238A.340(1) allows participating public employers to agree to provide these employer contributions for specific groups of employees. The employer will be solely responsible for reporting which groups of employees are eligible for the employer contributions, so long as those employees are eligible for membership under ORS 238A.300 and OAR 459-080-0010. PERS will rely on the employer's records to determine whether an employee was in a group that should have received employer contributions.

(3) Employer contributions made on behalf of a person who fails to meet the standards for IAP employee contributions under OAR 459-080-0150 will be returned pursuant to section (5) of that rule.

(4) Employer contributions made in error for an employee who is not entitled to those contributions under the employer's agreement will be returned less any fees or losses incurred since the contributions were submitted. Any earnings on these contributions will be credited to the forfeiture account established under OAR 459-080-0150.

(5) Whether contributions were erroneous will be based upon the employer's records as reported to PERS.

Stat. Auth: ORS 238A.450
Stats. Implemented: ORS 238A.340
Hist.: PERS 2-2005, f. & cert. ef. 1-31-05

459-080-0060

Vesting in an IAP Employer Account

(1) For the purpose of determining vesting under ORS 238A.320(3)(a):

(a) Calendar years before the calendar year in which the IAP employer account is established are included.

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

(c) Hours of service performed during the six-month period required to establish membership under ORS 238A.300 are included.

(d) 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.

(e) For calendar years before January 1, 2004, a member is presumed to have performed 600 hours of service in any calendar year in which the member was an active member unless records provided to PERS establish that the eligible employee did not perform at least 600 hours of service in the calendar year.

(f) 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.320 and 238A.375 may not be included.

(2) If a member has completed at least 600 hours of service in each of five calendar years pursuant to section (1) of this rule before the date the employer account is established, the member becomes vested in the IAP employer account on the date the account is established.

Stat. Auth.: 238A.450
Stats. Implemented: ORS 238A.010, 238A.320
Hist.: PERS 9-2009, f. & cert. ef. 7-21-09

459-080-0100

Credit for Military Service under USERRA

(1) Purpose. The purpose of this rule is to implement ORS 238A.415.

(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:

(A) An eligible employee, as defined in ORS 238A.005;

(B) An active member of PERS, as defined in ORS 238.005, on or after January 1, 2004; or

(C) An employee who is entitled to credit toward the probationary period required by ORS 238.015.

(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 an individual 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 an individual 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.

(d) “Salary” means the rate of pay the eligible 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.

(e) “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.

(4) Eligibility for retirement benefits under USERRA. An eligible 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 Sec. 4312;

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

(d) All employee contributions have been made; and

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

(5) Service 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 ORS 238A.300 and the vesting requirements described under ORS 238A.320, 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 Sec. 4304.

(7) Employee contributions.

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

(A) Employee contributions to be made by the employer. If the employee’s employer had agreed to pay employee contributions under ORS 238A.335(2)(b) as of the date the employee left employment to perform military service, the employer must pay, in a lump sum payment, the amount of 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) Employee contributions to be made by the employee. If the employee’s employer had not agreed to pay employee contributions, or had agreed to pay employee contributions under ORS 238A.335(2)(a) as of the date the employee left employment to perform military service, the employee may pay all or part of the 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 may 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 (7)(a)(B) on behalf of the employee under the payment provisions set forth in subparagraph (5)(a)(B)(ii) or (iii).

(c) Employee contributions may only be paid 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) Employee contributions shall be credited to the employee account established in ORS 238A.350(2).

(e) Employee contributions 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 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 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.

(8) Employer contributions.

(a) If the employee’s employer had agreed to make employer contributions under ORS 238A.340 as of the date the employee left employment to perform military service, the employer must pay, in a lump sum payment, the amount of 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) Any contributions made under this section shall be added to the employee’s employer account established in ORS 238A.350(3).

(c) 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.

(d) Contributions made under this section may not exceed the amount of employer 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.

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

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

(9) Military service that includes January 1, 2004. If an employee as defined in section (3)(a)(B) or (C) of this rule performs military service over a period including January 1, 2004:

(a) Retirement credit and contributions for military service before January 1, 2004, shall be determined in accordance with OAR 459-011-0100.

(b) Retirement credit and contributions for military service on or after January 1, 2004, shall be determined in accordance with this rule and OAR 459-011-0100.

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

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

Stat. Auth.: ORS 238A.450 & 238A.415
Stats. Implemented: ORS 238A.415
Hist.: PERS 3-2004, f. & cert. ef. 1-22-04; PERS 16-2006, f. & cert. ef. 11-24-06; PERS 1-2009, f. & cert. ef. 2-12-09

459-080-0150

Employee Contributions into the IAP Account

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

(a) "Forfeiture account" means the account set up by PERS to administer overpayments of employee contributions.

(b) "Salary" has the same meaning provided in:

(A) ORS 238A.005 for members who established membership in the Individual Account Program under the provisions of OAR 459-080-0010(1); or

(B) ORS 238.005 for members who established membership in the Individual Account Program under the provisions of OAR 459-080-0010(2) or (3).

(2) Employee contributions under the OPSRP Individual Account Program ("IAP") are required from all eligible employees who qualify as members, as established under OAR 459-080-0010, who:

(a) Are working in a position designated as a "qualifying position" as defined in OAR 459-070 0001; or

(b) Perform a total of 600 or more hours in a calendar year with one or more participating employers in one or more classes the participating employer has designated as a participating class.

(3) Contributions for current members.

(a) For a member who meets the standard set forth in section (2)(a) of this rule, contributions of six percent of the member's salary are required to be transmitted for all pay periods assigned under OAR 459-070-0100 from the date of hire, or January 1 of the current year, whichever is later.

(b) Once a member meets the standard set forth in section (2)(b) of this rule, retroactive contributions of six percent of the member's salary are required to be transmitted following the member's performance of 600 hours in the calendar year. Contributions are due for all pay periods assigned under OAR 459-070-0100 from the date of hire, or January 1 of the current year, whichever is later.

(4) Contributions for new employees.

(a) For an eligible employee who meets the standard set forth in section (2)(a) of this rule, contributions of six percent of the member's salary are required to be transmitted after the employee has established membership in the IAP as set forth under OAR 459-080-0010.

(b) Once an eligible employee meets the standard set forth in section (2)(b) of this rule, retroactive contributions of six percent of the member's salary are required to be transmitted from the date of membership in the IAP, as established under OAR 459-080-0010.

(5)(a) If contributions are submitted on behalf of an eligible employee who does not meet the standards set forth under section (2)(a) or (b) of this rule, the actual amount of those contributions will be returned after the end of the calendar year during which the pay period triggering those contributions ended.

(b) Any net earnings, losses, or administrative fees attributable to the returned contributions will be applied to the forfeiture account.

Stat. Auth.: ORS 238A.450
Stats. Implemented: ORS 238A.330
Hist.: PERS 13-2004(Temp), f. 5-19-04, cert. ef. 6-21-04 thru 12-1-04; PERS 21-2004, f. & cert. ef. 9-22-04; PERS 21-2005, f. & cert. ef. 11-1-05; PERS 4-2006, f. & cert. ef. 4-5-06

459-080-0200

IAP Account Adjustments for Earnings or Losses

(1) Earnings and losses on employee, employer, and rollover contributions under the OPSRP Individual Account Program (“IAP”) shall be credited annually in accordance with OAR 459-007-0005(6). In no event shall earnings or losses be credited to individual accounts until funds are actually received by PERS and have been successfully reconciled with the corresponding wage and contribution record.

(2) When a member elects to withdraw their accounts under ORS 238A.375, earnings or losses shall be credited in accordance with OAR 459-007-0320(2).

(3) When a member retires and elects to receive a lump sum payment of their accounts under ORS 238A.400(1), earnings or losses shall be credited in accordance with OAR 459-007-0320(1).

(4) When a member retires and elects to receive installment payments under ORS 238A.400(2), earnings or losses shall be credited in accordance with OAR 459-007-0330.

(5) The provisions of this rule are effective January 1, 2004.

Stat. Auth.: ORS 238A.450
Stats. Implemented: ORS 238A.350, 238A.375 & 238A.400
Hist.: PERS 19-2003(Temp), f. 12-15-03 cert. ef. 1-1-04 thru 6-25-04; PERS 12-2004, f.& cert. ef. 5-19-04; PERS 24-2004, f. & cert. ef. 10-18-04; PERS 12-2006, f. & cert. ef. 6-26-06; PERS 4-2009, f. & cert. ef. 4-6-09

459-080-0250

IAP Account Installments

(1) Definitions.

(a) “Anniversary date” means the first of the month after the date of distribution of the first installment payment.

(b) “Date of distribution” has the same meaning as defined in OAR 459-007-0001(7).

(c) “Estimated Life Expectancy” means the member’s life expectancy as determined by the applicable IRS mortality table.

(d) “Payout Period” means the span of years over which the member elects to receive installment payments under section (2) of this rule.

(2) Upon retirement, a member of the individual account program who elects to receive the amounts in the member’s employee and employer accounts in installments under ORS 238A.400(2) shall designate the number of years over which the installments are to be paid, selecting a period of 5, 10, 15, or 20 years, or a period equal to the member’s estimated life expectancy. The member may also request that installments be made on a monthly, quarterly, or annual basis.

(3) Account balances will be adjusted each month in accordance with OAR 459-007-0330.

(a) The amount of each 5-, 10-, 15-, or 20-year installment will be determined by dividing the member's adjusted balance by the number of remaining installment payments.

(b) The installment amount for the member's estimated life expectancy will be determined once a year by dividing the member's adjusted balance on the anniversary date by the member's remaining estimated life expectancy, which amount will then be paid monthly, quarterly, or annually.

(4) If a member requests installments under section (2) of this rule, but the amount of the requested installment would be less than $200 as determined at the time of the initial request, the frequency and Payout Period of the installment payment will be modified so that the amount of the installment is at least $200. If the member's account balance is $1,000 or less at the time of the initial request, the member will not be eligible for installments and the balance will be paid in a lump sum.

(5) Notwithstanding the Payout Period selected by the member under section (2) of this rule, any distribution will be adjusted to comply with the required minimum distribution requirements of 26 U.S.C. 401(a)(9) and regulations implementing that section, as in effect August 29, 2003.

(6) Members who elect a five year Payout Period or a lump sum payment may elect to directly roll over any portion of their IAP installment or lump sum payment to an eligible retirement plan subject to the limitations in OAR 459-005-0595.

(7) Members who elect a 10-, 15-, or 20-year, or an estimated life expectancy Payout Period cannot elect to have any portion of their installment payments rolled over.

(8) Members who are subject to the required minimum distribution requirements referenced in section (5) of this rule may only roll over that portion of their installment or lump sum payments that exceeds required minimum distribution requirements.

Stat. Auth.: ORS 238A.450
Stats. Implemented: ORS 238A.400
Hist.: PERS 23-2003(Temp), f. & cert. ef. 9-22-04 thru 3-15-05; PERS 30-2004, f. & cert. ef. 11-23-04; PERS 21-2005, f. & cert. ef. 11-1-05; PERS 14-2006, f. & cert. ef. 9-26-06; PERS 21-2007, f. & cert. ef. 11-23-07; PERS 4-2009, f. & cert. ef. 4-6-09

459-080-0260

Distribution of IAP Accounts at Retirement

(1) Except as provided in this rule, distribution under ORS 238A.400 of a member’s Individual Account Program (IAP) accounts at retirement shall begin only at the time the member retires for service under the PERS Chapter 238 Program or OPSRP Pension Program.

(2) A member of the IAP who is retired for disability under the PERS Chapter 238 Program may begin distribution of the member’s IAP accounts upon reaching earliest service retirement age.

(3) This rule does not apply to a member who retires for service as a judge member or legislator.

(4) This rule is effective January 1, 2011.

Stat. Auth.: ORS 238A.450
Stats. Impl.: ORS 238A.400
Hist.: PERS 10-2010, f. & cert. ef. 9-29-10

459-080-0300

Receipt of Payments by a Reemployed Member of the IAP

(1) A member who received a lump sum distribution under ORS 238A.400 or OAR 459-080-0250 who is employed by a participating public employer in a qualifying position becomes an active member as of 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 payment.

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

(2) A member receiving installment payments under 238A.400 and OAR 459-080-0250 who is employed by a participating public employer in a qualifying position becomes an active member as of the date of employment.

(a) The last installment payment to which the member is entitled is the last installment payment paid before the date of employment. A member who receives benefits to which he or she is not entitled must repay those benefits to PERS.

(b) The member is not required or permitted to repay installment payments paid before the date of employment.

(3) A member who is employed by a participating public employer in a non-qualifying position may receive a lump sum payment or installment payments.

(a) If, by reason of hours of service performed by the 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 member is subject to the provisions of sections (1) and (2) of this rule.

(4) Notwithstanding sections (1) to (3) of this rule, a member of the IAP who is a retired member of the PERS Chapter 238 Program and is employed by a participating public employer may receive payment(s) from the IAP subject to the limitations on employment of retired members of the PERS Chapter 238 Program.

(5) A member of the IAP who reestablishes active membership may, at subsequent retirement, elect any payment option provided in ORS 238A.400, subject to the provisions of OAR 459-080-0250.

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

459-080-0500

Limitation on Contributions

(1) Definitions. For purposes of this rule:

(a) “Annual addition” has the same meaning given the term in 26 U.S.C. 415(c)(2).

(b) “Compensation” has the same meaning given the term in 26 U.S.C. 415(c)(3)(A).

(2) Annual addition limitation. Except as otherwise provided in this rule, the annual addition to a member account for any calendar year may not exceed $52,000 effective January 1, 2014.

(3) Payment for military service. If a payment of employee contributions for a period of military service is made under OAR 459-080-0100:

(a) The payment shall be treated as an annual addition for the calendar year(s) of military service to which it relates;

(b) The payment shall not be treated as an annual addition for the calendar year in which it is made; and

(c) For the purpose of allocating payments under this section, the member’s compensation shall be the amount described in OAR 459-080-0100(3)(d).

Stat. Auth.: ORS 238A.450
Stats. Implemented: ORS 238A.370
Hist.: PERS 21-2003, f. 12-15-03 cert. ef. 1-1-04; PERS 8-2012, f. & cert. ef. 3-28-12; PERS 3-2013, f. & cert. ef. 3-29-13; PERS 3-2014, f. & cert. ef. 1-31-14

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