Oregon Administrative Code

459-005-0260 Accounts Receivable — Fraud (1) PERS will investigate all suspected fraudulent activities in order to maintain the integrity and proper distribution of benefits. (2) PERS may pursue all available legal and administrative actions in fraud cases discovered under sectio…

459-005-0300 Post-Doctoral Scholar (1) For purposes of this rule: (a) “Employing institution of education” means a public university listed in ORS 352.002 or the Oregon Health and Science University. (b) “Equivalent degree” means a terminal degree, the highest degree awarded in a…

459-005-0310 Date of Participation and Transfer of Employee Funds to the Optional Retirement Plan (1) Definitions. For the purposes of this rule: (a) “Member’s PERS account(s)” means any of the following accounts that PERS has established for the member: (A) A Tier 1 or Tier 2 me…

459-005-0350 Membership Status of Persons in Concurrent Employment Eligible to Participate in an Optional or Alternative Retirement Plan (1) Definitions. For the purpose of this rule: (a) “Alternative retirement plan” (ARP) means a retirement plan offered by Oregon Health and Sci…

459-005-0370 Date of Participation and Transfer of Employee Funds to an Alternative Retirement Plan — OHSU (1) Definitions. For the purposes of this rule: (a) “Alternative retirement plan” (ARP) means a retirement plan offered by the Oregon Health and Science University (OHSU) th…

459-005-0400 General Applicability of Attorney General’s Model Public Contract Rules (1) When PERS has independent statutory authority to contract, and the Public Contracting Code does not apply, PERS adopts the following Attorney General’s Model Public Contract Rules to govern i…

459-005-0506 Plan Compliance with Federal Statutes and Regulations (1) The purpose of administrative rules OAR 459-005-0500 to 459-005-0799 is to assure compliance with applicable federal statutes and regulations for governmental retirement plans qualified under the Internal Reve…

459-005-0510 Cost-of-Living Adjustment (1) A cost-of-living adjustment (COLA) under ORS 238.360 and 238A.210 is calculated on an annual basis and may use up to three COLA methods that are blended into a COLA percentage rate, as follows: (a) Creditable service or retirement credit…

459-005-0525 Ceiling on Compensation for Purposes of Contributions and Benefits (1) This administrative rule shall be construed consistently with the requirements of the Internal Revenue Code (IRC) Section 401(a)(17) relating to the limitation on annual compensation allowable for…

459-005-0530 Limitation for Employers with Multiple Retirement Plans — for Contributions and Distributions Before January 1, 2000 (1) Defined Benefit Plans. For purposes of OAR 459-005-0535, Annual Benefit Limitation and, before January 1, 2000, for purposes of section (3) of thi…

459-005-0535 Annual Benefit Limitation (1) Applicable Law. This administrative rule shall be construed consistently with the requirements of the Internal Revenue Code (IRC) Section 415(b) and the Treasury regulations and Internal Revenue Service rulings and other interpretation i…

459-005-0540 Permissive Service Credit (1) General Rule. If a member makes one or more after-tax contributions to PERS to purchase permissive service credit, then all such contributions by the member must satisfy one of the following limitations: (a) The annual benefit limitation…

459-005-0545 Annual Addition Limitation (1) This administrative rule shall be construed consistently with the requirements of the Internal Revenue Code (IRC) Section 415(c) and the Treasury regulations and Internal Revenue Service rulings and other interpretations issued thereund…

459-005-0560 Required Minimum Distributions, Generally (1) Applicable Law. Distributions under the Public Employees Retirement System (PERS) shall be made in accordance with Internal Revenue Code (IRC) Section 401(a)(9), including IRC Section 401(a)(9)(G), and the Treasury Regula…

459-005-0570 Required Minimum Distributions, Individual Account Program (IAP) (1) Definitions. The following definitions apply for the purposes of this rule: (a) “Designated Beneficiary” means: (A) A natural person designated as a beneficiary by the member and who is not an eligi…

459-005-0580 Trustee-to-Trustee Transfers (1) For purposes of this rule, “trustee-to-trustee transfer” means a transfer of funds from an eligible retirement plan to PERS for the purpose of obtaining restoration of forfeited creditable service or purchasing retirement credit pursu…

459-005-0590 General Provisions and Applicability Date — Direct Rollovers (1) OAR 459-005-0590 to 459-005-0599 apply to direct rollover distributions made on or after January 1, 1993. (2) Notwithstanding any provision to the contrary in ORS Chapters 238 or 238A or any administrat…

459-005-0591 Definitions — Direct Rollovers As used in OAR 459-005-0590 to 459-005-0599 the following words and phrases shall have the following meanings: (1) "Code" means the Internal Revenue Code of 1986, as amended. (2) A "direct rollover" means the payment of an eligible roll…

459-005-0595 Limitations — Direct Rollovers (1) Notwithstanding any provision to the contrary in OAR 459-005-0590 to 459-005-0599, a distributee's right to elect a direct rollover is subject to the following limitations: (a) A distributee may elect to have an eligible rollover di…

459-005-0599 Election Procedures — Direct Rollovers (1) PERS staff shall provide each distributee with a written explanation of the direct rollover rules for any eligible distribution, as required by Code Section 402(f). In addition to the general explanation required by Code Sec…

459-005-0600 Precedence for Pre-Tax and Post-Tax Deductions from Benefit Payment (1) The order of priority for deductions from a benefit payment is as follows: (a) Adjustment for payments to be made from the Benefit Equalization Fund as established under ORS 238.485. (b) Withhold…

459-005-0605 Reimbursement for Medical Records Requested by PERS (1) The following are the maximum amounts that PERS will reimburse for the costs incurred in processing medical requests for health information. (a) Cost of copying medical records: (A) $30.00 for 10 or fewer pages;…

459-005-0610 Recovery of Overpayments (1) Authority and Purpose. In accordance with ORS 238.715, this rule sets forth the criteria and process for the recovery of overpayments and erroneous payments made by PERS. It is the policy of the Board to implement wherever possible, and i…

459-005-0615 Minimum Retroactive Payment PERS may not issue a retroactive payment for underpaid monthly benefits or lump sum distributions if the total amount of the underpayment is less than $5. Statutory/Other Authority: ORS 238.650 and 238A.450 Statutes/Other Implemented: ORS …

459-005-0620 Uncollectible Debt Owed to PERS Any debt, including interest, penalties, or any portion of the debt, may be considered to be uncollectible when the debtor has no money or other thing of value owing or held by PERS that has not been credited to the debt, and it is rea…

459-005-0625 Contingency Reserve Subaccount (1) A subaccount is established under the contingency reserve account provided under ORS 238.670(1). The PERS Board will periodically authorize transfer of moneys from the contingency reserve account to the subaccount to ensure a maximu…

459-007-0001 Definitions The words and phrases used in this division have the same meaning given them in ORS Chapter 238, 238A and OAR 459-005-0001. Specific and additional terms for purposes of this division are defined as follows unless context requires otherwise: (1) “Annual r…

459-007-0003 Determination of Tier One Year-to-Date Calculation (1) Any year-to-date calculation ("factor") used to credit earnings to Tier One member regular accounts shall be a pro-rate of the assumed interest rate and cannot be greater unless and until the conditions in ORS 23…

459-007-0005 Annual Earnings Crediting (1) For purposes of this rule, “remaining earnings” means earnings available for distribution to a particular account or reserve after deduction of amounts required or authorized by law for other purposes. (2) Except as otherwise specified i…

459-007-0007 Assumed Rate (1) The Board will review the assumed rate in odd-numbered years as part of the Board’s review and adoption of actuarial assumptions and methods. (2) The Board may adopt a change in the assumed rate at any time. A change in the assumed rate is effective …

459-007-0009 Allocating Costs of Compliance with Generally Accepted Accounting Principles (1) Pursuant to ORS 238.610(1)(b), PERS will provide employers with audited financial data each year to comply with generally accepted accounting principles as established by the Government …

459-007-0015 Interest Rate Applied to Underpayment of Estimated Benefits In accordance with ORS 238.455(5), earnings credited to an underpayment of either Tier One or Tier Two estimated benefits shall be simple interest, prorated from date of underpayment to date of distribution …

459-007-0020 Statutory Limitation on the Crediting of Earnings No earnings shall be credited to any payment from the Fund unless specifically provided for in ORS Chapters 238, 238A and OAR chapter 459, divisions 007 and 009. Statutory/Other Authority: ORS 238.650 & 238A Statutes/…

459-007-0025 Crediting Earnings to a Member Lump Sum Payment (1) Definition. (a) “Member lump sum payment” means any payment received by PERS that: (A) Is not regularly scheduled; (B) Is not paid as a statutorily fixed percentage of salary; and (C) Is paid voluntarily by the memb…

459-007-0040 Crediting Earnings upon Withdrawal of a Tier One Member’s Account When a Tier One member withdraws his or her member account under ORS 238.265, earnings from the effective date of the last annual rate to the date of distribution shall be credited in the manner specif…

459-007-0050 Crediting Earnings for a Deceased Tier One Active or Inactive Member Upon the death of an active or inactive Tier One member, earnings from the date of death to the date of distribution shall be credited as specified in this rule. (1) Definitions. For purposes of thi…

459-007-0060 Crediting Earnings to the Tier One Employer Death Benefit (1) Upon the death of a Tier One member who is entitled to an employer death benefit under ORS 238.395, the amount of the employer benefit shall be added to the death benefit amount, as defined in OAR 459-007-…

459-007-0070 Crediting Earnings at Tier One Service or Disability Retirement Upon the service retirement or disability retirement of a Tier One member, earnings from the effective date of the last annual rate to the effective retirement date shall be credited to the member accoun…

459-007-0080 Crediting Earnings at Tier One Service Retirement, Single Payment Notwithstanding OAR 459-007-0070, when a Tier One member retires and elects to receive a single payment of benefits under ORS 238.305(2)(a) or (3), or receives a single payment of benefits under 238.31…

459-007-0090 Crediting Earnings upon Tier One Service Retirement, Two or More Installment Payments Notwithstanding OAR 459-007-0070, if a Tier One member retires and elects to receive installment payments under ORS 238.305(4), earnings shall be credited from the effective date of…

459-007-0110 Crediting Earnings at Tier One Loss of Membership When a Tier One member’s membership terminates under ORS 238.095(2), earnings from the effective date of the last annual rate to the first of the month following the month of loss of membership shall be credited to th…

459-007-0160 Crediting Earnings to Loss of Membership Account for Periods of Active Membership In accordance with ORS 238.095(5), as amended by section 5, chapter 776, Oregon Laws 2007, when a former member establishes membership in the system and has a Loss of Membership account…

459-007-0220 Distribution of Earnings for Withdrawal of Member's Account — Tier Two When a Tier Two member withdraws his or her member account under ORS 238.265, earnings or losses from the effective date of the last annual rate to the date of distribution shall be credited in th…

459-007-0230 Crediting Earnings for a Deceased Tier Two Active or Inactive Member Upon the death of an active or inactive Tier Two member, earnings from the date of death to the date of distribution shall be credited as specified in this rule. (1) Definitions. For purposes of thi…

459-007-0240 Crediting Earnings to the Tier Two Employer Death Benefit (1) Upon the death of a Tier Two member who is entitled to an employer death benefit under ORS 238.395, the amount of the employer benefit shall be added to the death benefit amount, as defined in OAR 459-007-…

459-007-0250 Crediting Earnings at Tier Two Service or Disability Retirement Upon the service or disability retirement of a Tier Two member, earnings from the effective date of the last annual rate to the effective retirement date shall be credited to the member account in the ma…

459-007-0260 Crediting Earnings at Tier Two Service Retirement, Single Payment Notwithstanding OAR 459-007-0250, when a Tier Two member retires and elects to receive a single payment under provisions of ORS 238.305(2) or (3), earnings or losses from the effective date of the last…

459-007-0270 Crediting Earnings upon Tier Two Service Retirement, Two or More Installment Payments Notwithstanding OAR 459-007-0250, when a Tier Two member retires and elects to receive installment payments under ORS 238.305(4), earnings shall be credited from the effective date …

459-007-0290 Crediting Earnings at Tier Two Loss of Membership When a Tier Two member's membership terminates under ORS 238.095(2), earnings from the effective date of the last annual rate through the end of the month of loss of membership shall be credited to the member account …

459-007-0300 Crediting Earnings to Police Officer and Firefighter Unit Accounts in the Fund (1) Definitions. For the purpose of this rule: (a) “Effective date of unit benefits” means the date the member elects to begin receiving unit benefits. (b) “End date” means the date after …