OAR Chapter 459 — Oregon Public Employees Retirement System

Division 1 PROCEDURAL RULES

Or. Admin. R. 459-001-0000 Notice of Proposed Rule

Prior to adoption, amendment or repeal of any permanent rule, the Public Employees Retirement System (PERS) shall give notice of the intended action:

(1) In the Secretary of State’s Bulletin referred to in ORS 183.360, at least 21 days before the effective date of the intended action.

(2) By emailing, or sending via postal mail if the recipient has elected that option, notice to persons and organizations on the PERS mailing list established pursuant to ORS 183.335(8), at least 28 days before the effective date of the intended action. An interested person or organization may request to be placed on the PERS mailing list by submitting a request to the agency Administrative Rules Coordinator.

(3) By emailing notice to the Director of the Department of Administrative Services and, to the extent identified, affected participating public employers in the System, at least 28 days before the effective date of the intended action.

(4) By emailing notice to the legislators specified in ORS 183.335(15), at least 49 days before the effective date of the intended action.

History

Statutory/Other Authority: ORS 183.335 & 238.650
Statutes/Other Implemented: ORS 183.335
PERS 2-2016, f. & cert. ef. 1-29-16
PERS 14-2004, f. & cert. ef. 6-15-04
PERS 3-1994, f. & cert. ef. 5-10-94
PER 1-1982, f. 11-22-82, ef. 1-1-83
PER 4-1981, f. & ef. 1-15-81
PER 13, f. & ef. 10-26-76

Or. Admin. R. 459-001-0005 Model Rules of Procedure

The Attorney General’s Model Rules of Procedure under the Administrative Procedures Act, as adopted and effective January 31, 2012, are adopted as rules of procedure of the Public Employees Retirement Board, except as modified by other rules of the Board.

[ED. NOTE: The full text of the Attorney General’s Model Rules of Procedure is available from the office of the Attorney General or the Oregon Public Employees Retirement System.]

History

Statutory/Other Authority: ORS 183.341, 237.470, 238.650, 238A.450 & 243.470
Statutes/Other Implemented: ORS 237.410 - 237.620, chapters 238, 238A & 243.401-243.507
PERS 5-2014, f. & cert. ef. 3-31-14
PERS 7-2008, f. & cert. ef. 4-4-08
PERS 10-2006, f. & cert. ef. 6-26-06
PERS 25-2004, f. 11-23-04, cert. ef. 12-1-04
PERS 11-2001, f. 12-14-01, cert. ef. 1-1-02
PERS 4-2000, f. & cert. ef. 7-14-00
PERS 1-1998, f. & cert. ef. 3-16-98
PERS 3-1995, f. 11-14-95, cert. ef. 11-15-95
PERS 4-1994, f. & cert. ef. 5-10-94
PERS 1-1992, f. & cert. ef. 1-14-92
PERS 2-1990, f. & cert. ef. 1-8-90
PER 1-1986, f. & ef. 7-7-86
PER 1-1980, f. & ef. 2-15-80
PER 2-1978, f. & ef. 11-2-78
PER 13, f. & ef. 10-26-72, Renumbered from 459-030-0005
PER 12, f. 3-14-74, ef. 4-11-74
PER 11, f. 4-18-72, ef. 5-1-72

Or. Admin. R. 459-001-0015 Conduct of Meetings of the Board

(1) Meetings of the Board shall be conducted by and shall be under the control of the Chair of the Board. In the Chair's absence, the Vice Chair shall preside. In the absence of both the Chair and the Vice Chair, the Board shall designate, by a majority vote, one of its members to preside.

(2) At the commencement of the Board meeting, any member of the public wishing to be heard on an item on the agenda shall advise the Chair of that person's name, address, and affiliation. Such person(s) may be heard at the discretion of the Chair.

(3) The Chair may set reasonable time limits for oral presentation by members of the public, and may exclude or limit cumulative, repetitious, or immaterial matter.

(4) The Chair, or any member of the Board, shall have the right to question or examine any member of the public making a presentation at the board meeting. The Chair may permit others to examine such persons.

(5) No rebuttal or additional statements by any member of the public shall be permitted by the Chair, unless allowed by the Chair.

(6) If the number of persons wishing to be heard on a scheduled agenda item exceeds the number the Chair believes can be reasonably accommodated during the time available to the Board for the meeting, the Chair may require persons wishing to be heard to submit their views by written statements rather than orally. With the approval of the majority of the Board, the Chair may also schedule a special hearing on the subject at a future time and date before a Hearings Officer designated by the Chair. If such special hearing is scheduled by the Chair, the designated Hearings Officer shall reduce witness statements to a condensed written report and provide it to members of the Board on or before a date set by the Chair.

(7) The Chair may, where practicable, receive all physical and documentary evidence presented by members of the public permitted to be heard at a Board meeting. Exhibits shall be marked and shall identify the person offering the exhibit. Exhibits shall be preserved by the System for one year, or at the discretion of the Chair, returned to the person offering the exhibit.

(8) A verbatim oral, written, or mechanical record shall be made of all meetings of the Board, or, in the alternative, a record in the form of minutes of the Board.

(9) Members of the public wishing to be heard by the Board on subjects not scheduled on the agenda may be heard at the discretion of the Chair.

(10) The Board may exclude members of the public from an executive session of a meeting of the Board to the extent permitted by ORS 192.660.

(11) No final action may be taken by the Board in an executive session. When an executive session is held in conjunction with a public session, the Board shall return to public session before taking a final action.

(12) A notice of an executive session that is not held in conjunction with a public session shall inform the public and interested persons of time and place at which a public session will be held to make a final or formal decision.

(13) Representatives of the news media shall be allowed to attend an executive session of a Board meeting other than those held under ORS 192.660(1)(d). The Board requires that all discussion and information provided in an executive session be undisclosed unless disclosure is specifically authorized by the Board.

(14) No person shall smoke any cigar, cigarette, or tobacco in any form in any meeting of the Board.

History

Statutory/Other Authority: ORS 192.610 - 192.710 & 238.650
PERS 21-2005, f. & cert. ef. 11-1-05
PERS 5-1994, f. & cert. ef. 5-10-94
PER 1-1978, f. & ef. 9-1-78

Or. Admin. R. 459-001-0025 Delegation to Director and Staff

(1) The Director is hereby authorized to take all action necessary or desirable to administer the system including but not limited to:

(a) Design application and other forms;

(b) Act on any application for refund of contributions; crediting service, correction of records, retirement for disability or service, and death benefits and allowances;

(c) Calculate and authorize payment of refunds, allowances or benefits except as provided in OAR chapter 459, division 15;

(d) Require medical, vocational or other professional examinations of disability retirement benefits applicants and recipients;

(e) Reinstate persons from disability retirement upon the Director’s determination that disability does not exist; and

(f) Initially review, grant or deny petitions for reconsiderations. The Director may deny any petition:

(A) Which does not contain specific grounds for reconsideration; or

(B) Regarding which there is no bona fide dispute of material fact, the pertinent statutes and rules are clear in their application to the facts and there was no material administrative error.

(g) Define and settle administrative and court litigation.

(h) Contract with and retain consultants, brokers, or other advisory personnel in order to assist in performing the functions of the Board under ORS 238.410.

(2) The Director may refer any matter to the Board or to an administrative law judge for a contested case or other hearing.

(3) The Director is hereby authorized to delegate to subordinates the authority to take any action on the Director’s behalf.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 183.413 - 183.470 & 183.482
PERS 6-2024, amend filed 10/04/2024, effective 10/04/2024
PERS 3-2012, f. & cert. ef. 3-28-12
PERS 21-2005, f. & cert. ef. 11-1-05
PERS 4-1990, f. & cert. ef. 3-26-90

Or. Admin. R. 459-001-0030 Review of Staff Actions and Determinations Regarding Persons

(1) For purposes of this rule, “Director” means the executive director of PERS, or an administrator appointed by the executive director.

(2) Request for review. Any person may file with the Director a request for review of a staff action or determination, except as provided for in ORS 238.285, 238.450 or in Board rules on disability retirement. The request must be filed within 60 days following the date the staff action or determination is sent to the person requesting review.

(3) Informal conferences. Informal conferences are available as an alternative means that may achieve resolution of any matter under review. A request for an informal conference does not change the time limit to file a request for review.

(4) Criteria for request. A request for review of a staff action or determination must be in writing and set forth:

(a) A description of the staff action or determination for which review is requested;

(b) A short statement of the manner in which the action is alleged to be in error;

(d) Reference to applicable statutes, rules or court decisions relied upon;

(e) A statement of the relief requested; and

(f) A request for review.

(5) Denial of request. The Director may deny any request for review within 45 days of receipt of the request:

(a) If the request does not contain the information required under section (4) of this rule; or

(b) When, in the Director's view, there is no bona fide dispute of material fact, the pertinent statutes and rules are clear in their application to the facts, and there is no material administrative error.

(6) If a request is denied by the Director because it does not contain the information required under section (4) of this rule, a requester will have one opportunity to correct that deficiency and resubmit a request for review within 45 days of the date of denial.

(7) Approval of request. If the request for review is granted, the Director must issue a written determination within 45 days of receipt of the request after:

(a) Considering the request;

(b) Directing staff to reconsider; or

(8) Extension of deadline. Any 45-day deadline within this rule may be extended upon request in writing for an additional 45 days.

(9) Resolution process.

(a) In lieu of issuing a written determination, the Director may direct staff to schedule a formal contested case hearing. The hearing must be conducted in accordance with the Attorney General’s Model Rules of Procedure.

(b) If a request is denied or the Director's determination is not the relief sought by the person, and the Director did not cause a contested case hearing to be scheduled, a person may file with the Board a request for a contested case hearing pursuant to the Attorney General’s Model Rules of Procedure.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 183.413 - 183.470
PERS 2-2014, f. & cert. ef. 1-31-14
PERS 2-2008, f. & cert. ef. 4-2-08
PERS 10-2001, f. 12-14-01, cert. ef. 1-1-02
PERS 5-1990, f. & cert. ef. 12-3-90
PERS 4-1990, f. & cert. ef. 3-26-90

Or. Admin. R. 459-001-0032 Review of Staff Actions and Determinations Regarding Public Employers

(1) For purposes of this rule, “Director” means the executive director of PERS, or an administrator appointed by the executive director.

(2) Request for review. Any public employer may file with the Director a request for review of a staff action or determination, except as provided in ORS 238.450 or in Board rules on disability retirement. The request must be filed within 60 days following the date the staff action or determination is sent to the public employer requesting review.

(4) Criteria for request. A request for review of a staff action or determination must be in writing and set forth:

(a) A description of the staff action or determination for which review is requested;

(b) A short statement of the manner in which the action is alleged to be in error;

(d) Reference to applicable statutes, rules or court decisions relied upon;

(e) A statement of the relief requested; and

(f) A request for review.

(5) Denial of request. The Director may deny any request for review within 45 days of receipt of the request:

(a) If the request does not contain the information required under section (4) of this rule; or

(7) Approval of request. If the request for review is granted, the Director must issue a written determination within 45 days of receipt of the request after:

(a) Considering the request;

(b) Directing staff to reconsider; or

(8) Extension of deadline. Any 45-day deadline within this rule may be extended upon request in writing for an additional 45 days.

(9) Resolution process for state agency employers. If a request is denied or the Director's determination is not the relief sought by the employer, and the employer is a state agency subject to the dispute resolution provisions of OAM policy 35.70.30.PO, the Interagency Dispute Resolution Process, then the dispute must be resolved in accordance with that policy.

(10) Resolution process for non-state agency employers. If a request is denied or the Director's determination is not the relief sought by the employer, and the employer is not a state agency subject to the dispute resolution provisions of OAM policy 35.70.30.PO, then the employer can request the issue to be addressed by arbitration, mediation, or a contested case.

(a) If the employer requests arbitration, PERS and the employer will as closely as possible parallel the process outlined in OAM policy 35.70.30.PO for state agency employers.

(b) If the employer requests a contested case, the process will be conducted pursuant to the Attorney General’s Model Rules of Procedure.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 183.413 - 183.470
PERS 3-2008, f. & cert. ef. 4-2-08

Or. Admin. R. 459-001-0035 Contested Case Hearing

(1) Request for a contested case hearing. To obtain review of any determination made under OAR 459-001-0030 or 459-001-0032 for which a contested case hearing has not been held, the party must file with the Board a request for a contested case hearing. The request must be filed within 45 days following the date of the Director's determination.

(2) Informal conferences. Informal conferences are available as an alternative means that may achieve resolution of any matter under review. A request for an informal conference does not relieve a person of the requirements for timely filing of a request for a contested case hearing.

(3) Criteria for request. The request for a contested case hearing must be in writing and set forth:

(a) A description of the determination for which review is requested;

(b) A short statement of the manner in which the determination is alleged to be in error;

(d) Reference to applicable statutes, rules or court decisions upon which the requester relies;

(e) A statement of the action the request seeks; and

(f) A request for a hearing.

(4) The Director, or an administrator appointed by the Director, may direct the staff to schedule a formal contested case hearing or develop a recommendation to deny the member's request to be presented to the Board. The Board may deny a request for a hearing when it has decided, in consultation with legal counsel, that the Board has no authority to grant the relief requested.

(5) Contested case hearings are referred to the Office of Administrative Hearings for a hearing pursuant to OAR 137-003-0515, unless the matter is resolved prior to the referral. The hearing must be conducted in accordance with the Attorney General's Model Rules of Procedure. Parties to the hearing will include the requester, any other person named as a party, and any other person who petitions to participate and is determined to have an interest in the outcome of the proceeding.

(6) The Board may deliberate and decide on final orders at any time and place allowed by law, as determined on a case-by-case basis, such as electronically or via a telephone conference.

(7) In contested cases where the agency is upholding the administrative law judge’s proposed order, the Director or Deputy Director may issue the final order after the Board has had an opportunity for review.

History

Statutory/Other Authority: ORS 238.650, 183.464 & 183.600 - 183.690
Statutes/Other Implemented: ORS 183.413 - 183.470
PERS 17-2025, amend filed 12/05/2025, effective 12/05/2025
PERS 11-2022, amend filed 07/22/2022, effective 07/22/2022
PERS 2-2008, f. & cert. ef. 4-2-08
PERS 11-2006, f. & cert. ef. 6-26-06
PERS 21-2005, f. & cert. ef. 11-1-05
PERS 10-2001, f. 12-14-01, cert. ef. 1-1-02
PERS 4-1990, f. & cert. ef. 3-26-90

Or. Admin. R. 459-001-0040 Petitions for Reconsideration

(1) Petition for reconsideration. Before initiating any judicial review of a final order in a contested case, a party may file with the Board a petition for reconsideration. If the party chooses to file a petition, it must be filed within 60 days following the date the order becomes final. Written argument from a petitioner must be submitted with the petition.

(2) Board action. The Board may either grant or deny a petition for reconsideration within 60 days of filing. If the Board does not grant or deny the petition within 60 days of filing, the petition shall be deemed denied.

(3) Staff action. If the petition for reconsideration is granted, the Board must enter a new final order in accordance with OAR 137-003-0675 and may consider written argument from the Director on the merits of the petition. The Board may schedule oral argument in its discretion.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 183.413 - 183.470 & 183.482
PERS 2-2008, f. & cert. ef. 4-2-08
PERS 11-2006, f. & cert. ef. 6-26-06
PERS 10-2001, f. 12-14-01, cert. ef. 1-1-02
PERS 4-1990, f. & cert. ef. 3-26-90

Or. Admin. R. 459-001-0090 Statement of Intention and Understanding

Unless specifically expressed to the contrary, no rule adopted by the Board, nor the amendment or revocation of an existing rule, after the effective date of this rule is intended to or shall be construed or relied upon to create any contractual right.

History

Statutory/Other Authority: 238.650
Statutes/Other Implemented: ORS 237.410 - 637, 238.005 - 715 & 243.401 - 507
PERS 8-2002, f. & cert. ef. 6-13-02

Division 5 ADMINISTRATION

Or. Admin. R. 459-005-0001 Definitions, Generally

The words and phrases used in OAR Chapter 459 have the same meaning given them in ORS Chapters 237, 238, 238A, and 243 unless otherwise indicated. Specific and additional terms used in OAR Chapter 459 generally are defined as follows unless context requires otherwise:

(1) “Ad hoc” means one-time for a specific purpose, case, or situation without consideration of a broader application.

(2) “After-tax” contributions means:

(a) Member contributions required or permitted by ORS 238.200 or 238.515, which a participating employer has not elected to “pick up,” assume or pay in accordance with ORS 238.205 and 238.515(b). “After-tax” contributions are included in the member’s taxable income for purposes of state or federal income taxation at the time paid to PERS. “After-tax” contributions are included in computing FAS and in computing the employer’s contributions paid to PERS.

(b) Payments made by a member to PERS for the purchase of additional benefits.

(3) “Before-tax” contributions means member contributions required or permitted by ORS 238.200 or 238.515, which a participating employer has elected to “pick up,” assume or pay in accordance with ORS 238.205 and 238.515(b). “Before-tax” contributions are not included in the member’s taxable income for purposes of state or federal income taxation at the time paid to PERS. “Before-tax” contributions are included in:

(a) Computing final average salary; and

(b) Computing the employer’s contributions paid to PERS if the employer has elected to “pick up” the member contributions.

(4) “Business day” means a day Monday through Friday when PERS is open for business.

(5) “Calendar month” means a full month beginning with the first calendar day of a month and ending on the last calendar day of that month.

(6) “Calendar year” means 12 consecutive calendar months beginning on January 1 and ending on December 31.

(7) “Casual worker” means an individual engaged for incidental, occasional, irregular, or unscheduled intervals or for a period of less than six consecutive calendar months.

(8) “Contributions” means any contributions required or permitted pursuant to ORS 238.200 or 238.515.

(9) “Differential wage payment” means a payment made on or after January 1, 2009:

(a) By an employer to a member with respect to any period during which the member is performing service in the uniformed services, as defined in USERRA, while on active duty for a period of more than 30 consecutive days; and

(b) That represents all or a portion of the wages the member would have received from the employer if the member were performing service for the employer.

(10) “Effective date of withdrawal” means the later of:

(a) The first day of the calendar month in which PERS receives a completed application from a member who requested a withdrawal; or

(b) The first day of the second calendar month following the calendar month in which the member terminated employment with all participating employers and all employers in a controlled group with a participating employer.

(11) “Effective retirement date” means:

(a) For Tier One and Tier Two service retirements, the date described in OAR 459-013-0260.

(b) For Tier One and Tier Two disability retirements, the date described in OAR 459-015-0001.

(12) “Elected official” means an individual who is a public official holding an elective office or an appointive office with a fixed term for the state or for a political subdivision of the state who has elected to participate in PERS pursuant to ORS 238.015(5).

(13) “Emergency worker” means an individual engaged in case of emergency, including fire, storm, earthquake, or flood.

(14) “Employee” has the same meaning as provided in ORS 238.005 and shall be determined in accordance with OAR 459-005-0020.

(a) For the purposes of ORS 238.005 to 238.750 the term “employee” includes public officers whether elected or appointed for a fixed term.

(b) The term “employee” does not include:

(A) A member of the governing board of a political subdivision unless the individual qualifies for membership under ORS 238.015.

(B) An individual who performs services for a public employer as a contractor in an independently established business or as an employee of that contractor as determined in accordance with OAR 459-005-0020.

(C) An individual providing volunteer service to a public employer without compensation for hours of service as a volunteer, except for volunteer firefighters who establish membership in accordance with ORS 238.015(6).

(15) “Employee Pension Stability Account” and “EPSA” mean the account established in ORS 238A.353.

(16) “Employer contribution account” means a record of employer contributions to the Fund, as required by ORS 238.225(1), and investment earnings attributable to those contributions, that the Board has credited to the account after deducting amounts required or permitted by ORS Chapter 238.

(17) “Employment” is compensated service to a participating employer as an employee whose:

(a) Period or periods of employment includes only the actual hours of compensated service with a participating employer as an employee; and

(b) Compensated service includes, but is not limited to, paid vacation, paid sick leave, or other paid leave.

(18) “EPSA excess” means any amount remaining after a member’s EPSA has been applied by the board to pay the costs of the pension or other retirement benefits payable to the member or the member’s beneficiary under ORS chapters 238 and 238A that accrue on or after July 1, 2020. In the event of an account withdrawal or when there is no eligible benefit against which to apply the EPSA, the entire account is considered EPSA excess.

(19) “Estimate” means a projection of benefits prepared by staff of a service or disability retirement allowance, a death or a refund payment. An estimate is not a guarantee or promise of actual benefits that eventually may become due and payable, and PERS is not bound by any estimates it provides.

(20) “FAS” and “final average salary” have the same meaning as provided in:

(a) ORS 238.005 for all PERS Tier One members;

(b) ORS 238.435(2) for all PERS Tier Two members who are not employed by a local government as defined in ORS 174.116;

(d) ORS 238.535(2) for judge members of PERS for service as a judge.

(21) “General service member” means membership in PERS as other than a judge member, a police officer, a firefighter, or a legislator.

(22) “Good cause” means a cause beyond the reasonable control of an individual. “Good cause” exists when it is established by satisfactory evidence that factors or circumstances are beyond the reasonable control of a rational and prudent individual of normal sensitivity, exercising ordinary common sense.

(23) “Independent contractor” means an individual or business entity that is not subject to the direction and control of the employing entity as determined in accordance with OAR 459-005-0020.

(24) “Judge member” has the same meaning as provided in ORS 238.500(3). For purposes of this chapter, active, inactive, and retired membership of a judge member shall have the same meaning as provided in ORS 238.005.

(25) “Legislator” means an individual elected or appointed to the Oregon Legislative Assembly who has elected to participate in PERS for their legislative service.

(26) “Member cost” means after-tax member contributions and payments made by or on behalf of a member to purchase additional benefits.

(27) “Participating employer” means a public employer who has one or more employees who are active members of PERS.

(28) “PERS” and “system” have the same meaning as the Public Employees Retirement System in ORS 238.600.

(29) “Public university” means a public university with a governing board as listed in ORS 352.002.

(30) “Qualifying position” has the same meaning as provided in ORS 238.005 and OAR 459-010-0003.

(31) “Regular account” means the account established under ORS 238.250 for each active and inactive member who has made contributions to the Fund or the account of an alternate payee of such a member.

(32) “Salary” has the same meaning as provided in ORS 238.005.

(a) “Salary” includes a differential wage payment, as defined in this rule.

(b) For a Tier One member, a lump sum payment for accrued vacation pay is considered salary:

(A) In determining employee and employer contributions.

(B) In determining final average salary for the purpose of calculating PERS benefits.

(A) Is considered salary in determining employee and employer contributions.

(B) Is not considered salary in determining final average salary for the purpose of calculating PERS benefits.

(33) “Seasonal worker” means an individual whose engagement is characterized as recurring for defined periods that are natural divisions of the employer’s business cycle or services.

(34) “Staff” means the employees of the Public Employees Retirement System as provided for in ORS 238.645.

(35) “Tier One member” means a member who established membership in the system before January 1, 1996, as defined in ORS 238.430(2).

(36) “Tier Two member” means a member who established membership in the system on or after January 1, 1996, in accordance with ORS 238.430.

(37) “USERRA” means the federal Uniformed Services Employment and Reemployment Rights Act of 1994, 38 U.S.C. 4301-4334, as in effect on the effective date of this rule.

(38) “Vacation pay” means a lump sum payment for accrued leave in a Vacation Leave Program provided by a public employer which grants a period of exemption from work for rest and relaxation with pay, and does not include:

(a) Sick leave programs;

(b) Programs allowing the accumulation of compensatory time, holiday pay or other special leaves unless the public employer’s governing body indicates by resolution, ordinance, or other legislative process, that such leave is intended to serve as additional vacation leave; and

(c) Other programs, such as a Personal Time Off (PTO) plan, which are a combination of vacation, sick, bereavement, personal and other leaves of pay as defined and described by a public employer unless the employer has a written policy that clearly indicates the percentage of the plan that represents vacation leave. If the employer’s PTO has a cash option, the employer must report to PERS the amount of any lump sum pay-off for the percentage that represents vacation leave.

(39) “Variable account” and “member variable account” mean the account in the Variable Annuity Account established under ORS 238.260(2) for each active and inactive member who has elected to have amounts paid or transferred into the Variable Annuity Account.

(40) “Variable Annuity Account” means the account established in ORS 238.260(2).

(41) “Volunteer” means an individual who performs a service for a public employer, and who receives no compensation for the service performed. The term “volunteer” does not include an individual whose compensation received from the same public employer for similar service within the same calendar year exceeds the reasonable market value for such service.

(42) “Working day” means a day that the employer is open for business. Unless the employer communicates this information to PERS, PERS will presume an employer’s “working day” is the same as a “business day,” as defined in section (4) of this rule.

(43) “Year” means any period of 12 consecutive calendar months.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 237, ORS 238, ORS 238A & ORS 243
PERS 3-2023, minor correction filed 02/06/2023, effective 02/06/2023
PERS 5-2021, amend filed 07/23/2021, effective 07/23/2021
PERS 3-2016, f. & cert. ef. 5-27-16
PERS 12-2015, f. & cert. ef. 11-20-15
PERS 13-2014, f. & cert. ef. 9-29-14
PERS 1-2012, f. & cert. ef. 2-1-12
PERS 3-2010, f. & cert. ef. 5-28-10
PERS 1-2009, f. & cert. ef. 2-12-09
PERS 4-2006, f. & cert. ef. 4-5-06
PERS 19-2005, f. 11-1-05, cert. ef. 1-1-06
PERS 15-2004, f. & cert. ef. 6-15-04
PERS 9-2004(Temp), f. 4-15-04 cert. ef. 5-21-04 thru 7-1-04
PERS 15-2003, f. & cert. ef. 12-15-03
PERS 14-2003, f. & cert. ef. 11-20-03
PERS 12-2003, f. & cert. ef. 11-14-03
PERS 3-2003(Temp), f. 6-13-03, cert. ef. 7-1-03 thru 12-26-03
PERS 2-1998, f. & cert. ef. 3-16-98

Or. Admin. R. 459-005-0005 Amendments to Retirement Law

(1) Any changes in benefit calculation or any benefit enhancement established by legislative amendment that affects the Public Employees Retirement System shall apply to members or their beneficiaries, or alternate payees or their beneficiaries, whose effective date of benefits is on or after the effective date of the amendment, unless otherwise specifically provided by law.

(2) Any increase in service or disability retirement benefits, to or on account of any person who has retired as a member of the system, established by amendment to law affecting the Public Employees Retirement System shall apply to either retired members or their beneficiaries, or alternate payees or their beneficiaries, as of the first of the calendar month following the effective date of such amendment, unless otherwise specifically provided by law.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.005 - 238.585
PERS 11-1998, f. & cert. ef. 12-17-98
PERS 1-1996, f. & cert. ef. 3-26-96, Renumbered from 459-010-0085
PER 8, f. 12-15-55

Or. Admin. R. 459-005-0010 Public Employees Retirement Fund, A Trust

(1) The purpose of ORS 238.660 is to ensure that the Public Employees Retirement Fund (PERF) is for the exclusive benefit of PERS members and the members' beneficiaries. If any other provision of an OAR imposes a requirement upon the PERF contrary to ORS 238.660, 238.660 and this rule shall prevail and be the controlling factor for any Board or staff action.

(2) Pursuant to ORS 238.660, the PERF is a trust fund, separate and distinct, for the sole and exclusive use of the members and their beneficiaries as set forth in ORS 238.005 to 238.750 and 237.950 to 237.980, unless otherwise specifically provided by law. All moneys, regardless of source, paid into the PERF, are to be used exclusively for the purposes set forth in ORS 238.005 to 238.750 and 237.950 to 237.980, unless otherwise specifically provided by law. All moneys and income earned thereon shall remain in the PERF except:

(a) As otherwise provided in ORS 238.005 to 238.750 and 237.950 to 237.980; or

(b) For any laws of the State of Oregon specifically authorizing the investment of moneys from the PERF for the purposes enhancing the value of the PERF.

(3) The State of Oregon, any political subdivision of the State of Oregon, any municipal or public corporation, any instrumentality thereof, and any agency created by two or more political subdivisions shall have no proprietary interest in PERF or any contributions made to PERF and may not claim or reclaim any contributions other than provided for in ORS 238.660.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.660
PERS 21-2005, f. & cert. ef. 11-1-05
PERS 11-1998, f. & cert.ef. 12-17-98

Or. Admin. R. 459-005-0012 Membership of Academic Employees of Community College and Public Universities

(1) For purposes of this rule, an “academic employee” of a community college or a public university means an instructor who teaches classes offered for college-approved credit, or on a non-credit basis.

(2) Librarians, counselors, and aides in non-teaching positions, tutors, or other non-teaching faculty, and classified, professional or nonprofessional support staff are not academic employees for the purposes of ORS 238.074 or 238A.142.

(3) Effective January 1, 2024, each hour for lecture time or classroom time shall be converted to 2.67 hours of employment. Other hours of employment shall be reported with no conversion.

(4) Each community college or public university shall determine who is an academic employee in its employ under this rule. In making that determination, the employing community college or public university shall consider all disciplines (academic activity) collectively when an employee’s assignment includes multiple disciplines.

(5) For academic employees concurrently employed in an academic and a non-academic position in one or more community colleges during an academic year, the combination of academic and non-academic duties shall be considered in determining eligibility for membership pursuant to ORS 238.015 or ORS 238A.100.

(6) Upon request by PERS, the employer shall submit an official copy of the employee’s position description or other employment document that describes the employee’s duties and disciplines to support their determination under subsection (4) of this rule.

(7) Employment of retired members of the system in academic or non-academic positions is subject to the limitations in ORS 238.082 or ORS 238A.245.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.074, 238A.142 & House Bill 2740 (2023)
PERS 5-2024, adopt filed 04/01/2024, effective 04/01/2024

Or. Admin. R. 459-005-0015 Leave of Absence without pay.

(1) For purposes of this rule:

(a) “Major fraction of a month” means more than one-half of the total calendar days in a calendar month;

(b) “The period of time when school is not normally in session” means the period of time outside the dates that school is presumed to be in session as described in OAR 459-010-0014 and OAR 459-075-0150.

(2) Employer/Employee Agreement. An official leave of absence without pay for any purpose must have the following in order to be considered bona fide:

(a) An agreement in writing;

(b) Accordance with the applicable law, rules and regulations;

(d) Certification to PERS by the employer granting such leave.

(3) Creditable Service and Retirement Credit.

(a) A leave of absence without pay occurring on or after July 1, 1987, which constitutes the major fraction of a month:

(A) May not be used to calculate “years of membership” under ORS 238.300; and

(B) May not be used to determine “creditable service” or “retirement credit” under ORS 238.005.

(b) A leave of absence without pay occurring before July 1, 1987, which constitutes the major fraction of a month:

(A) Must be used to calculate “years of membership” under ORS 238.300; and

(B) Must be used to determine “creditable service” and “retirement credit” under ORS 238.005.

(c) A leave of absence without pay occurring on or after January 1, 2004, which constitutes the major fraction of a month may not be used to determine “retirement credit” under ORS 238A.140 for any period of employment after the date membership is established under ORS 238A.100.

(4) Reporting Requirement. Unless otherwise agreed upon by PERS, the employer shall report the following in a format acceptable to PERS:

(a) Any period, or periods, of leave of absence without pay, which constitute(s) the major fraction of a month, for each member at the time the leave begins. The reported period(s) of leave of absence without pay must include an end date.

(b) Any amendment or extension to (a) previously reported period(s) of leave of absence without pay.

(5) A PERS member on an official leave of absence without pay is not considered terminated from service with a participating employer.

(6) An employee on an official leave of absence without pay on the date the employer begins to participate in PERS, shall be considered to be an employee on such date for the purpose of determining eligibility for participation in PERS.

(7) A layoff from employment does not constitute a leave of absence without pay.

(8) Reporting Leave of Absence Without Pay for School Employees.

(a) Except as provided by subsection (8)(b), a school employee who is on leave of absence without pay during the period of time when school is not normally in session should not be reported to PERS under section (4) of this rule.

(b) An employee of an institution of higher education, Department of Human Services, the Oregon Youth Authority, the Department of Corrections or the State Board of Education who is on leave of absence without pay during the period of time when school is not normally in session may be reported to PERS if:

(A) The employee is not engaged in teaching or other school activity at an institution supervised by the authority, board or department, and

(B) The employee was required to provide service during the period under the terms of their employment agreement.

History

Statutory/Other Authority: 238.650 & 238A.450
Statutes/Other Implemented: 238.300 & 238A.140
PERS 12-2026, amend filed 07/24/2026, effective 07/24/2026
PERS 16-2025, amend filed 12/05/2025, effective 12/05/2025
PERS 3-2025, adopt filed 03/31/2025, effective 03/31/2025

Or. Admin. R. 459-005-0020 Determination of Employee Status

(1) Definitions. For purposes of this rule:

(a) “Employee” means:

(A) For a Tier One or Tier Two member, an individual who meets the definition of “employee” provided in ORS 238.005 and OAR 459-005-0001(14), and includes an individual who has the status of a common-law employee of a public employer, under the usual common law rules applicable in determining the employee/employer relationship.

(B) For an OPSRP member, an individual who meets the definition of “eligible employee” provided in ORS 238A.005, and includes an individual who has the status of a common-law employee of a public employer, under the usual common-law rules applicable in determining the employee/employer relationship.

(b) “Independent contractor” means an individual or business entity providing services to a public employer where the public employer has the right to control or direct only the result of the labor or service, and not the means and manner of providing the labor or service, under the usual common-law rules applicable in determining the employee/employer relationship.

(c) “Third-party firm or service provider” means a business that provides individuals to a public employer who provide services to the public employer as part of a service contract.

(2) Reporting Requirement. Public employers shall report all employees to PERS as required under OAR 459-070-0100.

(3) Determination of whether an individual is an employee of a public employer eligible for PERS benefits is made under common-law rules.

(a) An individual is presumed to be an employee of a public employer if the public employer reports the individual’s wage and tax information to the Internal Revenue Service via Form W-2.

(b) An individual is presumed to be an independent contractor of a public employer if the public employer reports payments for the individual’s or business entity’s services to the Internal Revenue Service via Form 1099.

(4) PERS will rely on a public employer’s worker classification of an individual based upon sections (2) and (3) of this rule. However, if a claim of worker misclassification is raised in a dispute under ORS 238.285, a dispute under ORS 238.450, an appeal by an individual under OAR 459-001-0030, or an appeal by an employer under OAR 459-001-0032, a public employer, or the individual who provided services to a public employer, may rebut the presumption of employee or independent contractor status in section (3) of this rule by providing to PERS the following documentary evidence:

(a) A judgment, court order, Internal Revenue Service Form SS-8 determination, or other Internal Revenue Service ruling that concludes that the appropriate classification for the individual who provided services to a public employer differs from the presumptions in section (3) of this rule;

(b) Other records satisfactory to PERS that establish that the appropriate classification for the individual who provided services to a public employer differs from the presumptions in section (3) of this rule, including, but not limited to the following:

(A) Paycheck stubs or earnings statements;

(B) A signed employment verification letter completed by the employer that provides the following information:

(i) Employer’s business name and address;

(ii) The location of the employment, if different from the employer’s place of business;

(iii) The employee’s job title;

(iv) The dates of employment;

(v) The employee’s work hours;

(vi) The employee’s duties and responsibilities;

(vii) The employee’s salary; and

(viii) Contact information for the person who prepared the letter;

(i) The employee’s full name;

(ii) The date of hire;

(iii) The salary or rate of pay;

(iv) The employee’s manager or supervisor; and

(v) The nature of the employment (seasonal, time-bound or fixed term, at-will);

(D) A written contract between the individual and the public employer that provides the terms of the engagement for independent contractor;

(E) Records showing the extent to which the public employer directed or controlled the work performed by the individual related to any of the factors outlined in subsection (6) below; or

(F) Any public contracting analysis data performed by the public employer under ORS 279B.030-279B.036.

(5) If a public employer, or the individual who provided services to a public employer, submits documentary evidence to rebut the presumption of employee or independent contractor status as required under section (4) of this rule, PERS shall evaluate such evidence to determine whether an individual is an employee of the public employer or independent contractor under common-law rules.

(6) To determine an individual’s worker classification, PERS shall follow the three-category common-law analysis, in accordance with standards established by the Internal Revenue Service. The three categories that provide evidence of the degree of control or independence are:

(a) Behavioral control. This category examines facts that show whether a public employer has a right to direct and control the work performed by the individual, even if that right is not exercised. Facts to be considered in evaluating behavioral control include, but are not limited to:

(A) Instructions. This includes the type, degree, and frequency of instructions given to the individual concerning when, where, and how the work is performed. Relevant factors may include, but are not limited to:

(i) Setting hours of work;

(ii) Requiring full-time work;

(iii) Setting the order or sequence of work;

(iv) Requiring that the work be performed on the public employer’s premises; and

(v) Requiring the services to be rendered personally by the individual, and restricting the individual’s ability to hire, supervise, or pay assistants to complete the work.

(B) Evaluation systems. This includes the type, degree, and frequency of evaluations. Relevant factors may include, but are not limited to:

(i) Requiring the individual to submit regular oral or written reports to the public employer;

(ii) Whether evaluation systems are used to measure how the work is done, or only the final work product (without regard to how the work is done); and

(iii) Whether the public employer or a third-party is performing the evaluation.

(C) Training. This includes the type, degree, and frequency of training an individual receives from the public employer. Relevant factors may include, but are not limited to:

(i) Providing training on how to do the job, or other training opportunities;

(ii) Frequency of training opportunities;

(iii) Whether the public employer or a third-party is providing the training; and

(iv) The source of funding for the training.

(b) Financial control. This category examines facts that show whether a public employer has the right to control the economic aspects of the individual’s labor or services. Facts to be considered in evaluating financial control include, but are not limited to:

(A) Whether the public employer furnishes the tools and equipment used to perform the work;

(B) Whether the public employer is responsible for obtaining all assumed business registrations, professional occupation licenses, or certificates required by state or local government ordinances for the individual to conduct business;

(D) The extent to which the individual can realize a personal profit or loss;

(E) Whether the individual’s services are available to the public;

(F) Whether the individual may provide labor or services to more than one employer at a time; and

(G) Whether the public employer pays the individual wages on a regular schedule, upon completion of a job, on a lump-sum or straight commission basis, or on an annual or periodic retainer basis.

(c) Relationship of the parties. This category examines facts that show how the individual and public employer perceive their relationship to each other. Facts to be considered in evaluating the relationship of the parties include, but are not limited to:

(A) The terms of any written contracts that describe whether the employer has the legal right to control both the method and the result of the labor or service. Other important factors include who can modify the contracts, and how modifications are made to such contracts;

(B) Whether the public employer provides employee benefits to the individual;

(C) Whether the individual provides services on an ongoing basis, or whether the relationship ends once the labor or services are completed;

(D) The extent to which the individual is integrated into the public employer’s business activities;

(E) Whether the individual’s services are a key activity of the public employer’s business; and

(F) Whether the public employer or the individual have the right to discipline, discharge, or terminate the relationship before services are completed, and the consequences of discipline, discharge, or termination.

(7) Other important considerations.

(a) Standard of review. The determination that the individual is a public employee or an independent contractor will be based upon the totality of the circumstances. The degree and importance of each factor will vary depending on the labor or services to be performed, and the context in which the labor or services are performed.

(b) If, under the common-law rules, PERS determines that there is an employee/employer relationship, it is immaterial how the relationship is described by the parties. The substance of the relationship, not the label, governs the individual’s status for PERS purposes. PERS will disregard any contractual designation of the individual as an “independent contractor” or that designates that the individual is not an employee if the facts demonstrate an employee/employer relationship.

(c) An individual who provides services to a public employer shall be reported to PERS as a common-law employee of the public employer if an analysis under this rule results in the finding of an employee/employer relationship between the individual and the public employer.

(A) If an employee of a third-party firm or service provider is determined to be a common-law employee of a public employer, the third-party firm or service provider shall disclose all information regarding an employee’s wages that is reasonably necessary to enable a public employer to make PERS contributions.

(B) If a public employer is not able to obtain information regarding the employee’s wages from the third-party firm or service provider, the employee shall submit to the board any payroll and tax records relating to the services provided to the public employer. The employee may also submit any public contracting wage and benefits analysis data performed by the public employer under ORS 279B.030-279B.036. Upon review of the submission, the board shall fix a wage which shall be the basis for computing the amounts of the contributions. If the employee provided services to multiple employers, adjustments will be made to reflect the actual hours of service provided to the public employer responsible for the PERS contributions.

(d) For purposes of determining whether an individual provides services as an independent contractor, the creation or use of a business entity, such as a corporation or limited liability company, by an individual for the purpose of providing services does not, by itself, establish that the individual provides services as an independent contractor. When the individual provides services through a business entity, such as a corporation or a limited liability company, services as an independent contractor may be satisfied by the individual or the business entity.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.005 & 238A.005
PERS 10-2022, minor correction filed 06/01/2022, effective 06/01/2022
PERS 9-2022, adopt filed 05/27/2022, effective 05/27/2022

Or. Admin. R. 459-005-0025 Student Employee

(1) Under ORS 238.015(4) and 238A.005(4)(d), student employees are not eligible for membership in the system by reason of their student employment. A participating employer is responsible for determining whether a person is ineligible for membership in the system because the person is a student employee.

(2) As used in this rule:

(a) The term “school” includes the following public and private educational institutions: a charter school, an elementary school, a middle school, a junior high school, a high school, a community college, an institution of higher education, an Oregon education service district, and the Oregon State School for the Deaf.

(b) The term “enrolled at least half-time” means that the person is enrolled in a school as a student on at least a half-time basis, as determined by the school in which enrolled.

(3) A participating employer may designate a person as a student employee if:

(a) The person is enrolled at least half-time in a school; and

(b) The employment is principally related to theperson’s status as a student, or for the purpose of furthering the person’s education as a student, e.g. a work-study program, student internship program, etc.

(4) A participating employer may not designate a person as a student employee, and must evaluate whether the person is an employee eligible for membership in the system (as determined under OAR 459-005-0020) if:

(a) The person is not enrolled at least half-time in a school; and

(b) The person’s employment is not principally related to the person’s status as a student, or for the purpose of furthering the person’s education as a student.

(5) If a person qualifies as a student employee under section (3) of this rule, the person may be designated as a student employee during a temporary break that does not exceed an academic quarter or semester, if the student employee has notified the employer of their intent to resume at least half-time enrollment following the break.

(6) For a person whose student employee status varies from time to time, the person’s principal status during the school year shall be used in determining whether a person is an ineligible student employee or an eligible employee for that school year.

History

Statutory/Other Authority: ORS 238.650 & ORS 238A.450
Statutes/Other Implemented: ORS 238.015(4) & ORS 238A.005(4)
PERS 4-2023, minor correction filed 02/07/2023, effective 02/07/2023
PERS 4-2019, adopt filed 05/31/2019, effective 05/31/2019

Or. Admin. R. 459-005-0030 Payments of Sums to Persons Entitled Thereto

Retirement allowances, contribution refunds, or any other sums shall be paid directly to any one thereto entitled under the provisions of the Retirement Law, regardless of any claim maintainable against such sum thereafter in the hands of the recipient.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238
PERS 1-1996, f. & cert. ef. 3-26-96, Renumbered from 459-010-0140
PER 8, f. 12-15-55

Or. Admin. R. 459-005-0040 Verification of Retirement Data

(1) For purposes of this rule:

(a) “Eligible member” means an active or inactive member of the system who is within two years of attaining earliest service retirement age or has attained earliest service retirement age. “Eligible member” does not include a retired member of the system, an alternate payee, or a beneficiary.

(b) “Verification” means a document provided to an eligible member by PERS pursuant to ORS 238.285.

(2)(a) PERS will determine an eligible member’s creditable service, retirement credit, final average salary, member account balance, and accumulated unused sick leave for a verification based on employment data reported to PERS by the member’s employers, as reflected in PERS’ records. Except as provided in this section, an employer may not modify an eligible member’s records after the earlier of the 30th day after PERS notifies the eligible member’s employer that a request for a verification has been submitted or the date the employer confirms the records in a manner determined by PERS.

(b) PERS may direct an employer to modify records if PERS determines modification is necessary, such as:

(A) To reconcile the member’s records before the verification is issued;

(B) To implement the resolution of a dispute under ORS 238.285(2); or

(A) The petition must:

(i) Be specific to an eligible member;

(ii) Specify the duration and end date of the extension requested;

(iii) Be received by PERS no later than the 21st day after notice is issued; and

(iv) Establish good cause why the extension should be granted.

(B) The PERS Executive Director or a person designated by the Director may grant or deny the request.

(3) For any verification provided by PERS:

(a) All data in a verification will be as of December 31 of the last calendar year before the date the verification is produced for which the Board has adopted annual earnings crediting.

(b) If an eligible member requests an additional verification, an employer may not confirm or modify, nor may a member dispute, by reason of the additional verification, data for periods before the date specified in the most recent verification.

(4) When a member who has received a verification retires for service, PERS may not use amounts less than the amounts verified to calculate the member’s retirement allowance or pension, except as permitted in ORS 238.285(3) and this section.

(a) Amounts in a verification may be adjusted if a Tier Two member restores forfeited creditable service and establishes Tier One membership in the manner described in ORS 238.430(2)(b).

(b) Amounts in a verification may be adjusted to comply with USERRA.

(c) Amounts in a verification may be adjusted to implement a judgment, administrative order, arbitration award, conciliation agreement, or settlement agreement.

(d) If, subsequent to the date specified in a verification, a member’s account is divided pursuant to ORS 238.465, the member and alternate payee accounts will be used to determine compliance with 238.285(3) and this section.

(e) If the amounts in a verification are adjusted under ORS 238.285(3) or this section, the verification will be reissued by PERS as of the date specified in the original verification.

(5) Erroneous payments or overpayments not recoverable under ORS 238.285(6) will be allocated annually by the Board.

History

Statutory/Other Authority: ORS 238.650 & 238A.450
Statutes/Other Implemented: ORS 238.285
PERS 1-2013, f. & cert. ef. 1-25-13
PERS 11-2010, f. & cert. ef. 11-24-10

Or. Admin. R. 459-005-0055 Actuarial Equivalency Factors

(1) Experience Study. The Director shall take steps to assure that the Board’s consulting actuary shall present the Experience Study required by ORS 238.605 to the Board by September 1 of each odd numbered year.

(2) Actuarial Equivalency Study. The Director shall take steps to assure, pursuant to ORS 238.630(3)(g), that the Board’s consulting actuary shall present an Actuarial Equivalency Study to the Board as soon as practicable, but no later than the December 15 next following the presentation of the Experience Study described in section (1) of this rule. Such Actuarial Equivalency Study shall review the assumptions and the actuarial factors used to:

(a) Convert account balances to monthly allowances;

(b) Convert the standard form of benefit (ORS 238.300) to elective options with various survivorship features (ORS 238.305); and

(3) Adoption of actuarial equivalency factors.

(a) The Board shall adopt actuarial equivalency factor tables to be effective January 1 of each even numbered year.

(b) Actuarial equivalency factor tables adopted under this section shall comply with the standards set forth in OAR 459-005-0060.

(4) Calculation of retirement allowance under the Chapter 238 Program.

(a) The provisions of this section apply to any member or alternate payee with an effective date of retirement on or after July 1, 2003, except for a person who is a judge member on June 30, 2003, and who makes an election under ORS 238.565(4).

(b) PERS shall establish years of service, an account balance and final average salary as of June 30, 2003, for each person described in subsection (a) of this section. The years of service, account balance and final average salary shall be determined as provided in section 40 of chapter 67, Oregon Laws 2003 (Enrolled HB 2003).

(A) “Regular” calculation. The Board shall calculate the retirement allowance using:

(i) The years of service, account balance and final average salary as of the effective date of retirement;

(ii) All calculations applicable to the member under ORS 238.300(2);

(iii) The optional form of retirement allowance selected by the member at retirement under ORS 238.300, 238.305, 238.320 or 238.325; and

(iv) The actuarial equivalency factor tables in effect on the effective date of retirement.

(B) “Look-back” calculation. The Board shall calculate the retirement allowance using:

(i) The years of service, account balance and final average salary described in subsection (b) of this section;

(ii) All calculations applicable to the member under ORS 238.300(2);

(iii) The optional form of retirement allowance selected by the member under ORS 238.300, 238.305, 238.320 or 238.325; and

(iv) The actuarial equivalency factor tables in effect on June 30, 2003.

(d) The retirement allowance shall be the higher of the amounts described in paragraphs (c)(A) and (c)(B) of this section, payable as of the effective date of retirement.

(5) Death benefit payments. Any monthly payments to be made to a beneficiary under ORS 238.390, 238.395 or 238.405 for a member who dies on or after May 9, 2003, shall be calculated using the actuarial equivalency factor tables that are in effect on the date that the first payment is due the beneficiary.

(6) Judge members. The actuarial equivalency factor tables in effect on June 30, 2003, shall be used to calculate the retirement allowance and surviving spouse pension of a person who is a judge member on June 30, 2003, and who makes an election under ORS 238.565(4), whether that election is made before, on or after June 30, 2003.

History

Statutory/Other Authority: ORS 238.630 & 238.650
Statutes/Other Implemented: ORS 238.605, 238.607 & 238.630)
PERS 7-2009, f. & cert ef. 7-21-09
PERS 5-2004, f. & cert. ef. 2-18-04
PERS 6-1996, f. 8-13-96, cert. ef. 1-1-99
PERS 1-1993, f. 4-14-93, cert. ef. 5-1-93

Or. Admin. R. 459-005-0060 Standards for the Adoption of New Actuarial Equivalency Factors

(1) When the Board adopts actuarial equivalency factors pursuant to OAR 459-005-0055(3), the Board must consider:

(a) Changes in mortality to reflect the best actuarial information on mortality available at the time that new actuarial tables are adopted; and

(b) Changes in the assumed rate adopted by the Board for the latest actuarial valuation if they are determined by the Board, in consultation with the PERS actuary, to be statistically significant.

(2) The mortality tables must be combined with respect to gender and membership classification to derive unisex actuarial equivalency factors. The blending of the mortality assumptions shall be performed by the Board's consulting actuary in accordance with generally recognized and accepted actuarial principles and practices.

History

Statutory/Other Authority: ORS 238.630 & 238.650
Statutes/Other Implemented: ORS 238.607 & 238.630
PERS 7-2009, f. & cert ef. 7-21-09
PERS 2-2003, f. & cert. ef. 6-13-03

Or. Admin. R. 459-005-0100 Definitions — Member’s Fiduciary

(1) “Fiduciary Document” means the court order appointing a person as the member’s fiduciary or the signed power of attorney by the member appointing the member’s fiduciary as their attorney-in-fact.

(2) For the purposes of OAR 459-005-0100 to 459-005-0160, the term "member" means a PERS member as defined in ORS 238.005, the beneficiary of a PERS member, an alternate payee as defined in 238.465, or the beneficiary of an alternate payee.

(3) “Member’s Fiduciary” means a guardian or conservator appointed under Oregon law, any person acting as an attorney-in-fact for a member under a power of attorney, or any other person appointed by a court to assume financial responsibility with respect to a member.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.005 - 238.715
PERS 6-2007, f. & cert. ef. 2-21-07
PERS 4-1999, f.& cert. ef. 10-11-99
PERS 7-1996, f. & cert. ef. 11-12-96

Or. Admin. R. 459-005-0110 Fiduciary Document Requirements

(1) No person may act as a member’s fiduciary with respect to PERS matters unless the Fiduciary Document naming or appointing such person(s) meets the requirements set forth in this rule.

(2) The Fiduciary Document shall be in written form and may be either on forms furnished by PERS or in a format approved by PERS. The Fiduciary Document shall contain express language appointing the member’s fiduciary as guardian or conservator or otherwise to act on behalf of the member either with respect to the member's financial matters generally or with respect to the member's PERS benefits specifically.

(3) At a minimum, the Fiduciary Document must contain:

(a) The signature of the member or other authority appointing or designating the member’s fiduciary.

(b) The signature and address of the member’s fiduciary. This requirement can also be satisfied if the Fiduciary Document is accompanied by another document containing the signature and address of the member’s fiduciary.

(4) A Fiduciary Document must be received by PERS before the member’s fiduciary will be allowed to conduct any transactions on behalf of the member and must otherwise meet the requirements set forth in OAR 459-005-0110 or 459-005-0130, as applicable.

(5) If a Fiduciary Document was executed by the member over ten years prior to the date such document is filed with PERS, and there is a request to take any action by the member’s fiduciary, the document will be effective with respect to PERS only if the member’s fiduciary certifies to PERS, in a form which PERS in its sole discretion deems satisfactory, the continued validity of the fiduciary document.

(6) If more than one individual is named or appointed in a Fiduciary Document as the member’s fiduciary, the document must stipulate whether the individuals must act together or may act separately.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.005 - 238.715
PERS 6-2007, f. & cert. ef. 2-21-07
PERS 4-1999, f. & cert. ef. 10-11-99
PERS 7-1996, f. & cert. ef. 11-12-96

Or. Admin. R. 459-005-0130 Termination of Member’s Fiduciary

The authority granted a member’s fiduciary will terminate upon the occurrence of the earliest of the following events:

(1) A written revocation is filed with PERS containing the member’s signature, if the member appointed the member’s fiduciary.

(2) A Fiduciary Document is filed with PERS which:

(a) Bears a date that is later than the Fiduciary Document previously filed with PERS;

(b) Complies with the requirements set forth in OAR 459-005-0110; and

(3) PERS receives notification of the death of the member.

(4) PERS receives notification that the member’s fiduciary has been removed or their authority terminated by the court which originally named or granted authority to the member’s fiduciary, or that action has been taken by a different court.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.005 - 238.715
PERS 6-2007, f. & cert. ef. 2-21-07
PERS 7-1996, f. & cert. ef. 11-12-96

Or. Admin. R. 459-005-0140 Permissible Actions Under A Fiduciary Document

(1) After receipt by PERS of a Fiduciary Document meeting the requirements set forth in OAR 459-005-0110, the member’s fiduciary and the member (unless the member's fiduciary is a guardian or conservator) may execute any document required by PERS or perform any PERS related business that falls within the scope of the powers granted by the Fiduciary Document.

(2) If the power to appoint a substitute member’s fiduciary is provided in the Fiduciary Document and is subsequently exercised by the member’s fiduciary, such appointment must be evidenced by a written document submitted to PERS containing:

(a) The member’s fiduciary’s signature;

(b) An express granting of all, or whatever portion of, the powers held by the member’s fiduciary that is being granted to the substitute member’s fiduciary; and

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.005 - 238.715
PERS 6-2007, f. & cert. ef. 2-21-07
PERS 7-1996, f. & cert. ef. 11-12-96

Or. Admin. R. 459-005-0150 Effective Date of Fiduciary Document Rules

OAR 459-005-0100 to 459-005-0140 shall be effective on the date they are adopted by the Public Employees Retirement Board (Board), and shall govern any documents submitted to PERS on or after the date these rules are adopted by the Board for the purpose of effecting the appointment of a member’s fiduciary or revoking a Fiduciary Document after such date, or until amended or repealed by the Board.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.005 - 238.715
PERS 6-2007, f. & cert. ef. 2-21-07
PERS 21-2005, f. & cert. ef. 11-1-05
PERS 7-1996, f. & cert. ef. 11-12-96

Or. Admin. R. 459-005-0180 Incapacity of Members, Beneficiaries, and Alternate Payees

(1) Definitions. For purposes of this rule, "incapacitated" and "financially incapable" have the meanings given those terms in ORS 125.005.

(2) Presumption of capacity. Unless demonstrated otherwise in accordance with the requirements of section (3) of this rule, PERS staff shall base its determinations on the presumption that all members, beneficiaries, and alternate payees are not incapacitated or financially incapable of making benefit decisions and executing any documents related to those decisions.

(3) Process for overcoming presumption. If any party in interest challenges a staff determination in accordance with OAR 459-001-0030 through 459-001-0040 based on a claim of incapacity of a member, beneficiary, or alternate payee, PERS will reverse its previous determination only if the party presents an order or determination by a court with appropriate jurisdiction specifically directing PERS to do so, or such other relief as that court may direct.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.005 - 238.715
PERS 8-2003, f. & cert. ef. 7-2-03

Or. Admin. R. 459-005-0210 Transmission of Information, Reports, and Documents

(1) As used in this rule:

(a) “Deferred Compensation Program” means the Oregon Savings Growth Plan (OSGP), the PERS Board as Trustee of the OSGP, the PERS Director as Administrator of the OSGP, and any OSGP staff member.

(b) “Digital signature” means the signature includes a certificate embedded in an electronic document that attests to the document’s authenticity.

(c) “Document” means any document that is not specifically excluded under sections (3) and (8) of this rule, including, but not limited to, any petition, written request, or other document related to the appeal of a staff or Board action under OAR 459-001-0030, 459-001-0032, or 459-001-0035.

(d) “Electronic signature” means signatures that replicate a person’s signature on the document.

(e) “PERS” means the PERS Board, the PERS Director, the PERS Health Insurance Program which is administered by PERS under ORS Chapter 238, and any PERS staff member.

(f) “PERS forms” means forms created and published by PERS or the Deferred Compensation Program for the purpose of administering benefits. PERS forms do not include forms within Online Member Services (OMS) or the Voya participant interface that are completed and submitted within OMS or the Voya participant interface.

(g) “Remote online notarization” means a notarial act performed for a remotely located individual by means of communication technology as allowed by ORS 194.277.

(2) Unless otherwise provided for in this rule, information, reports, or documents may be transmitted to PERS or the Deferred Compensation Program by personal delivery or by use of:

(a) The United States Postal Service (USPS);

(b) A private express carrier as defined in ORS 293.660(2);

(d) Electronic mail through the Internet (email); or

(e) PERS’ Online Member Services (OMS);

(f) Other sources approved by the Director for the transmission of reports or documents.

(3) The following original documents shall be accepted by PERS or the Deferred Compensation Program only if transmitted in person, or by use of USPS or by private express carrier:

(a) Contracts and Agreements pertaining to the merger or integration of other retirement systems into PERS.

(b) Any request by a member for confidential information under provisions of ORS 192.355(12).

(c) Subpoenas, garnishments, summons, and other legal documents that require service on PERS. These documents will not be accepted unless they are served in accordance with applicable law.

(4) The following standards shall be observed when transmitting any information, report, or document to PERS or the Deferred Compensation Program by fax or email. Failure to comply with these standards shall result in the PERS or the Deferred Compensation Program not accepting the information, report, or document:

(a) The quality of the original hard copy shall be clear and dark enough to transmit legibly.

(b) Any information, report, or document requiring signature shall be signed prior to being transmitted.

(c) If PERS or the Deferred Compensation Program requests the transmission of a specific form, the transmission shall be on forms furnished by PERS or the Deferred Compensation Program or substitute forms previously approved by PERS or the Deferred Compensation Program, respectively.

(d) Any PERS or Deferred Compensation Program report or form shall be completed as required in PERS instructions.

(e) If PERS or the Deferred Compensation Program requests the transmission of a report or document that is part of a longer report or document, or contains multiple pages, then the entire text of the report or document must be transmitted. Both sides of any two-sided PERS or Deferred Compensation Program form are to be transmitted.

(f) For a report or document that requires accompanying documentation, all components shall be transmitted together as one transmission.

(g) The first sheet of the transmission shall indicate the number of pages being transmitted, and shall contain a telephone number to call if there are problems with the transmission.

(h) Neither the original nor any additional copies of the facsimile filings should be filed with PERS.

(i) The sender shall maintain the original of the document with the original notarization or signature affixed, as well as proof of fax transmission.

(5) PERS or the Deferred Compensation Program may require the original, or a certified copy of the original, where a question of authenticity arises.

(6) State regulations require encrypted messaging systems for communicating confidential information such as date of birth, Social Security number, or personal medical information. Because email communications for PERS and the Deferred Compensation Program are not encrypted, it is PERS’ policy to not use email for sharing confidential information. Only information, reports, or documents not otherwise protected under the provisions of ORS 192.355, which do not contain confidential information, may be transmitted by email. If confidential information is transmitted by email to PERS or the Deferred Compensation Program, PERS cannot guarantee that such information may not be intercepted and read by other parties besides the person to whom it is addressed.

(7) Information, reports, or documents submitted to PERS or the Deferred Compensation Program may become a public record. Public records may be subject to public inspection and copying, if not otherwise protected by federal or state law.

(8) PERS staff shall use the following standard for acceptance of signatures submitted to PERS:

(a) PERS forms received from members, beneficiaries, or alternate payees must include a handwritten signature unless the form has also been electronically notarized. If the form contains a digital or electronic signature that has been notarized via Remote Online Notarization, staff may accept all uses of the same signature that appear within the notarized document.

(b) Unless otherwise specified, PERS staff can generally accept digital and electronic signatures on other documents, including documents from employers, and not need to distinguish based on the signature’s format.

(9) This rule does not address the transmission of a remittance, a payment, a remittance advice or a payment advice, which is addressed in OAR 459-005-0215.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.005–238.750, 192.355, 243.435 & 243.470
PERS 11-2026, amend filed 07/24/2026, effective 07/24/2026
PERS 5-2022, amend filed 03/28/2022, effective 03/28/2022
PERS 10-2020, minor correction filed 06/24/2020, effective 06/24/2020
PERS 21-2005, f. & cert. ef. 11-1-05
PERS 20-2004, f. 9-22-04 cert. ef. 10-14-04
PERS 6-1999, f. & cert. ef. 11-22-99

Or. Admin. R. 459-005-0215 Transmittal of Remittances or Payments

(1) For the purpose of this rule:

(a) A "remittance" means the transfer of funds from a participating employer to the Public Employees Retirement Fund (PERF) which includes:

(A) The contributions of both employer and employee members required in ORS 238.200 to 238.230 used to fund PERS benefits;

(B) A PERS invoice for employee and/or employer contributions and associated late penalties;

(D) Other contributions to the PERF.

(b) An "employer payment" means the transfer of funds from an employer to PERS for other than the PERF which includes, but is not limited to:

(A) Contributions to the Deferred Compensation Program;

(B) Administrative fees; or

(c) A "member payment" means the transfer of funds from a member to the PERF for the purchase of service credit in PERS, restoration of a member's account or the satisfaction of an invoice for over payment of PERS benefits, other than administrative fees associated with a purchase or invoice.

(d) A "remittance advice" means an itemized statement on PERS-approved form(s) that describes a remittance.

(e) An "employer payment advice" means an itemized statement approved by PERS that describes an employer payment.

(f) A "member-payment advice" means the copy of a PERS-prepared itemized statement of the member cost(s) for a purchase of service credit, the restoration of a member's account or an invoice for over payment of PERS benefits.

(g) An "advice document" means the document referred to in subsections (d), (e) or (f) of this section.

(2) The transmission of a remittance, an employer payment or a member payment shall be accompanied by a remittance advice or a payment advice, respectively.

(3) The transmission of a remittance, an employer payment or a member payment to PERS shall be as follows:

(a) The United State Postal Service (USPS);

(b) A private express carrier as defined in ORS 293.660(2);

(4) A remittance or an employer payment shall be returned to the employer and shall be subject to late penalties, when applicable, if transmitted, without the corresponding advice document.

(5) A remittance or an employer payment shall be returned to the employer and shall be subject to late penalties, when applicable, if transmitted, with or without the corresponding advice document, to any PERS office or other address not currently designated by PERS.

(6) An advice document that is not accompanied by the transfer of funds, such as a corrected or supplemental remittance advice, may be transmitted as provided in section (3) of this rule or by use of:

(a) Telephone facsimile communication (fax);

(b) Electronic mail (e-mail) through the Internet; or

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.005 - 238.750
PERS 21-2005, f. & cert. ef. 11-1-05
PERS 6-1999, f. & cert. ef. 11-22-99

Or. Admin. R. 459-005-0220 Receipt Date for Reports, Documents, Remittances, Payments, Data, and Requests

(1) As used in this rule:

(a) “Imaged date” means the date on which a report, document, remittance, or payment is imaged and stored electronically to a dedicated network server.

(b) “OMS” means PERS’ Online Member Services.

(c) “Online submission date” means the date on which data or a request successfully submitted through OMS is saved to PERS’ system.

(d) “Private express carrier” has the same meaning as in ORS 293.660(2).

(e) “Settlement date” means the date on which the participating Depository Financial Institution (DFI) or its correspondent is scheduled to be debited or credited by the Federal Reserve.

(f) “Transmission data” means details such as the sender and receiver’s fax numbers or email addresses, the time and date of transmission, the duration of transmission, the number of pages sent, and whether the transmission was successful.

(2) If the due date of a report, document, remittance, or payment falls on a weekend or legal holiday, the due date is deemed to be the next business day.

(3) Except as otherwise provided in this rule, any report, document, or remittance required by PERS shall be deemed filed and received on the date of the receipt recorded, stamped or affixed to the report, document, or remittance when received by PERS.

(a) In the case of a check or cash submission, the payment shall be deemed filed and received on the date recorded in PERS’ daily cash receipts log or check log.

(b) In the case of a fax transmission, the document shall be deemed filed and received on the receipt date as reflected by the transmission data that is automatically generated by the fax machine or fax server and embedded on the fax transmission or the imaged date of the fax, unless the sender submits evidence that meets the requirements of subsection (5) that the fax transmission was sent earlier.

(4) Except as otherwise provided in this rule, any report, document, remittance, or payment that does not display a PERS receipt record, stamp, or affixation, or has not been recorded in PERS’ daily cash receipts log or check log, shall be deemed filed and received on the imaged date. If the imaged date, cash receipts log date or check log date is later than the due date, the report, document, remittance, or payment shall be deemed filed and received one business day before the imaged date, cash receipts log date, or check log date.

(5) Any report, document, remittance, payment, data, or request required by PERS which is lost or delayed in transmission, shall be deemed filed and received on the date it was mailed or deposited for transmittal to USPS or a private express carrier, or the date it was transmitted by fax, email, or OMS if the sender:

(a) Can establish by evidence satisfactory to PERS that the report, document, remittance, payment, data, or request was deposited for delivery or transmission on or before the date due for filing, and was correctly addressed to PERS.

(A) Evidence satisfactory to PERS for USPS or a private express carrier may include, but is not limited to, documentation provided by USPS or the private express carrier, such as a receipt or delivery confirmation.

(B) Evidence satisfactory to PERS for a fax or email transmission may include, but is not limited to, an affidavit by the sender verifying that the fax or email was correctly addressed and sent to PERS, together with a copy of any transmission data, activity report, or metadata from the sender’s fax machine, electronic device, or fax/email server showing the date and time that the fax or email was transmitted by the sender, and a duplicate of the original report or document.

(C) Evidence satisfactory to PERS for an OMS submission may include, but is not limited to, an affidavit by the member verifying that the member submitted the data through OMS, together with a printout of the confirmation message displayed on the member’s screen that the online submission was successful.

(b) Files with PERS a duplicate of the lost or delayed report, document, remittance, payment, data, or request in accordance with the transmittal requirements of OAR 459-005-0210 or 459-005-0215; and

(A) within 30 days after PERS notifies the sender in writing of failure to receive the report, document, remittance, or payment; or

(B) the due date for filing a request for review under OAR 459-001-0030, OAR 459-001-0032, OAR 459-001-0035, or dispute under ORS 238.285 or ORS 238.450, whichever was later.

(6) An electronic funds transfer (EFT) shall be deemed received on the settlement date of the transfer. A settlement date specified by an employer for an EFT shall be no later than the due date specified by PERS for a remittance or a payment.

(7) Any report or document that PERS accepts by e-mail transmission as specified in OAR 459-005-0210(5), which is transmitted by e-mail to any office of PERS shall be deemed received as of the system-generated date and time stamp that is displayed on the email header line of the email that is received by PERS.

(8) An electronic submission of data made through OMS shall be deemed received on the online submission date.

(9) A report, document, or data transmitted by fax, e-mail, or OMS must be transmitted in accordance with the provisions of this rule and OAR 459-005-0215, and must be received by PERS before midnight on the due date.

(10) When transmitting a report, document, or data by fax, e-mail, or OMS, the sender bears the risk of failure of the transmission.

History

Statutory/Other Authority: ORS 238.650 & ORS 238A.450
Statutes/Other Implemented: ORS 238 & ORS 238A
PERS 2-2026, amend filed 01/30/2026, effective 01/30/2026
PERS 5-2019, amend filed 07/26/2019, effective 07/26/2019
PERS 4-2016, f. & cert. ef. 7-29-16
PERS 7-2014, f. & cert. ef. 3-31-14
PERS 10-2007, f. & cert. ef. 7-26-07
PERS 21-2005, f. & cert. ef. 11-1-05
PERS 6-1999, f. & cert. ef. 11-22-99

Or. Admin. R. 459-005-0225 Requirement to Make Payments by Electronic Funds Transfer

(1) As used in this rule, the following words and phrases have the following meanings:

(a) “Electronic funds transfer” has the same meaning given the term in ORS 293.525.

(b) “ACH credit” means the electronic funds transfer from the participating employer’s account, initiated by the participating employer and cleared through the Automated Clearing House (ACH) network for deposit to PERS.

(c) “ACH debit” means the electronic funds transfer from the participating employer’s account, initiated by PERS and cleared through the ACH network to debit the participating employer’s account and credit the PERS account.

(2) Participating employers are required to make all payments to PERS by means of electronic funds transfer (EFT).

(3) On a form provided by PERS, participating employers shall authorize EFT payments to PERS, and submit the form to PERS by December 1, 2005.

(a) The participating employer shall provide PERS with all information necessary to allow for EFT payments, including the method of EFT payment (ACH debit or ACH credit).

(b) A participating employer must complete a new EFT authorization form to change the method of transfer or to update the employer’s account information.

(4) ACH debits from a participating employer’s account will be processed on the third business day after the statement date and be effective on the fifth business day after the statement date.

(5) Effective on and after January 1, 2006, a penalty shall be assessed equal to one percent of payments by participating employers made by means other than EFT. This penalty is in addition to any penalties incurred under ORS 238.705 and 238.710.

(6) The PERS Executive Director will have the discretion to waive the penalty described in section (5) of this rule. The employer must submit any such requests in writing.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 293.525
PERS 5-2017, f. & cert. ef. 7-28-17
PERS 12-2005, f. & cert. ef. 7-5-05

Or. Admin. R. 459-005-0250 Recovery of Administrative Costs

(1) Estimates.

(a) Any active or inactive member within two years of eligibility for service retirement may request from PERS an estimate of service retirement benefits (estimate).

(b) PERS shall provide a member with a maximum of two estimates in a calendar year at no cost.

(d) A fee charged under subsection (c) of this section must be paid in full before receipt of the requested estimate(s). Payment must be made by check or money order payable to the Public Employees Retirement System.

(e) The provisions of subsections (a) to (d) of this section do not apply to current judge members during their term of office.

(f) A disability estimate shall be provided to a member if a completed disability application is on file with PERS. A disability estimate is provided at no charge.

(2) Verification of Retirement Data.

(a) Pursuant to section 3, chapter 1, Oregon Laws 2010 and OAR 459-005-0040, PERS shall provide one verification of retirement data at no cost.

(b) PERS shall charge a fee of $100 for each verification of retirement data provided to a member who has already received at least one verification.

(c) A verification of retirement data that is reissued pursuant to OAR 459-005-0040(4)(e) is not subject to the fee established by this section.

(d) A fee charged under subsection (b) of this section must be paid in full at the time the member submits a request for a verification of retirement data. Payment must be made by check or money order payable to the Public Employees Retirement System.

(e) This section is effective on July 1, 2011.

(3) Full cost purchases. If a member purchases retirement credit under section 2, chapter 971, Oregon Laws 1999, ORS 238.148, 238.157, 238.162, or 238.175, a fee of $145 shall be added to the cost of the purchase to cover the administrative costs incurred by PERS in processing the request.

History

Statutory/Other Authority: ORS 238.650 & 238.610
Statutes/Other Implemented: ORS 238.610, OL 2010 & Ch. 1
PERS 3-2011, f. & cert. ef. 6-1-11
PERS 8-2009, f. & cert ef. 7-21-09
PERS 22-2004, f. & cert. ef. 9-22-04
PERS 22-2003, f. 12-15-03 cert. ef. 1-1-04

Or. Admin. R. 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 section (1) of this rule, including but not limited to:

(a) Criminal prosecution under ORS Chapters 162, 164 and 165; or

(b) Civil sanctions under ORS Chapter 180.

History

Statutory/Other Authority: ORS 238.650 & 238A.450
Statutes/Other Implemented: ORS Ch. 238 & 238A
PERS 5-2016, f. & cert. ef. 9-30-16

Or. Admin. R. 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 given field of study, or a degree that under the facts and circumstances is equivalent to a doctoral degree.

(c) “Post-doctoral scholar” means a person employed in a position that meets the requirements of section 1 of Chapter 569, Oregon Laws 2017, and this rule.

(2) Under ORS 238.005(8)(f) and 238A.005(4)(i), post-doctoral scholars are not eligible for membership in the system. An employing institution of education is responsible for determining whether a person is employed as a post-doctoral scholar. An employing institution of education may classify a person as a post-doctoral scholar if:

(a) The position requires a doctoral or equivalent degree;

(b) The position is limited to a temporary and defined period of employment that shall not exceed five cumulative calendar years; and

(c) A faculty member of the employing institution of education provides the post-doctoral scholar with clinical or academic research training under formal mentorship.

(3) The post-doctoral scholar appointment shall be evidenced in writing by a letter of appointment, signed and dated by the post-doctoral scholar and the employing institution of education.

(a) The letter of appointment and related documentation shall reflect the following information:

(A) The duties and responsibilities of the training; and

(B) The period of appointment with starting and ending dates. If any changes such as renewals, extensions or early terminations are made during the appointment, the period of appointment shall be updated to reflect such changes.

(b) The letter of appointment shall be finalized no later than six months from the date of hire.

(c) The employing institution of education shall provide PERS with a copy of the letter of appointment and related documentation upon request.

(4) The provisions of this rule apply to persons hired on or after January 1, 2018.

History

Statutory/Other Authority: ORS 238.650 & 238A.450
Statutes/Other Implemented: ORS 243.800, OL 2017, Ch. 569
PERS 1-2018, adopt filed 02/02/2018, effective 02/02/2018

Or. Admin. R. 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 member’s regular account established under ORS 238.250;

(B) A Tier 1 or Tier 2 member’s variable account established under ORS 238.260; and

(C) The member’s Individual Account Program (IAP) accounts established under ORS 238A.350 and 238A.353, to the extent the member is vested in those accounts.

(b) “ Optional retirement plan” (ORP) means a retirement plan offered by a public university that is authorized under ORS 243.815, or an optional retirement plan offered by a community college that is authorized under ORS 341.551.

(2) The effective date of an election by an administrative or academic employee of a public university, or an administrative employee of a community college, to participate in an ORP is the first day of the month following a period of six full calendar months of employment in the qualifying administrative or academic position.

(a) Unless otherwise agreed upon, notice of the effective date of the election will be provided to PERS by the ORP provider within 30 days of the date of the election.

(b) If the employee is a vested member of PERS who elects to transfer eligible funds consisting of amounts in the member’s PERS account(s) from PERS to the ORP pursuant to ORS 243.815 (6) or 341.551(5), the ORP provider will forward to PERScopies of the employee’s signed ORP election form and the employee’s written transfer request as part of the notice required in subsection (a) of this section.

(3) If an employee requests a transfer of eligible funds pursuant to section (2)(b) of this rule :

(a) PERS must transfer the funds to the ORP within the 60-day period following the later of:

(A) The effective date of the employee’s election to participate in the ORP; or

(B) The effective date of the transfer.

(b) The effective date of a transfer is the first of the month in which PERS completes reconciliation of the account to be transferred.

(c) PERS may not transfer funds to the ORP if the member is concurrently employed by another PERS participating employer.

History

Statutory/Other Authority: ORS 238A.450 & ORS 238.650
Statutes/Other Implemented: ORS 243.815 & ORS 341.551
PERS 6-2021, amend filed 07/23/2021, effective 07/23/2021
PERS 12-2015, f. & cert. ef. 11-20-15
PERS 10-2008, f. & cert. ef. 7-31-08
PERS 4-2005, f. and cert. ef. 1-31-05
PERS 3-1996, f. & cert. ef. 6-11-96

Or. Admin. R. 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 Science University (OHSU) that is authorized under ORS 353.250, or a retirement plan offered by Harney County Health District (HCHD) that is authorized under ORS 237.750.

(b) “Concurrent employment” means employment with two or more different employers participating in the Public Employees Retirement System (PERS) at the same time.

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

(d) “Employer group” means the group of similarly situated employers, such as the group of public university employers, or the group of community college employers.

(e) “Optional retirement plan” (ORP) means a retirement plan offered by a public university that is authorized under ORS 243.815, or a retirement plan offered by a community college that is authorized under ORS 341.551.

(2) If a person employed by a public university, community college, HCHD, or by OHSU is concurrently employed by another PERS participating employer, eligibility for PERS membership shall be based on the following:

(a) If the person elects to participate in an ORP or an ARP, and is concurrently employed with other PERS participating employers in a non-qualifying position(s) as defined in OAR chapter 459, the person:

(A) Shall not be eligible to establish membership in PERS as an employee of a public employer, the employer group, or any of the employers of the employer’s controlled group, that offers the ORP in which the person has elected participation, and

(B) Shall not be eligible to establish membership in PERS as an employee of the other concurrent PERS employer or employers.

(b) If the person who elects to participate in an ORP offered by a public university under ORS 243.815 , or an ARP offered by OHSU or HCHD andis concurrently employed with other PERS participating employers in a qualifying position(s) as defined in OAR chapter 459, the person:

(A) Shall not be eligible to establish membership in PERS as an employee of the public employer or employer group that offers the ORP or ARP in which the person has elected participation ; and

(B) Shall establish membership in OPSRP as an employee of the other concurrent PERS employer or employers, if all other membership conditions are met.

(c) If the person who elects to participate in an ORP offered by a community college under ORS 341.551, is concurrently employed with other PERS participating employers in a qualifying position(s) as defined in OAR chapter 459, the person shall not be eligible to establish membership in PERS as an employee of the public employer or employer group that offers the ORP in which the person has elected participation, or as an employee of the other concurrent PERS employer or employers, unless the person withdraws from the ORP.

(3) A member of PERS with concurrent employment who establishes PERS membership under the provisions of paragraph (2)(b)(B) of this rule shall not be eligible to have any funds transferred to an ORP or ARP under OAR 459-005-0310 or OAR 459-005-0370.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.015, ORS 237.750, ORS 238.015, ORS 341.551, ORS 243.815 & ORS 353.250
PERS 6-2021, amend filed 07/23/2021, effective 07/23/2021
PERS 3-2018, minor correction filed 02/06/2018, effective 02/06/2018
PERS 12-2015, f. & cert. ef. 11-20-15
PERS 4-2005, f. & cert. ef. 1-31-05
PERS 3-1996, f. & cert. ef. 6-11-96

Or. Admin. R. 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) that is authorized under ORS 353.250, or an ARP offered by Harney County Health District (HCHD) that is authorized under ORS 237.750.

(b) “ARP provider” means OHSU or HCHD.

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

(d) “Member’s PERS account(s)” means any of the following:

(A) The Tier 1 or Tier 2 member's regular account as defined in ORS 238.250,

(B) The Tier 1 or Tier 2 member's variable account as defined in ORS 238.260,

(C) The member’s Individual Account Program (IAP)accounts under ORS 238A.350, to the extent the member is vested in those accounts; and

(D) The member’s Employee Pension Stability Account under 238A.353.

(2) If an employee elects to participate in an ARP:

(a) Unless otherwise agreed upon, the effective date of an election to participate in an ARP shall be certified by the ARP provider to PERS within 30 days of that effective date.

(b) If the employee is a vested member of PERS who elects to transfer the balance of the member’s PERS account(s) to the ARP, the ARP provider shall forward a copy of the election to transfer together with the participation certification required in subsection (a) of this section.

(c) In the event an eligible employee is disabled or deceased and an election to participate in an ARP has not been signed by the employee, the employee shall be deemed to be an active member of PERS, if all other membership conditions are met.

(3) In accordance with ORS 238A.100 and 238A.300:

(a) An employee who is serving a six-month waiting period shall establish active membership in accordance with ORS 238A.100 and 238A.300 unless PERS receives notification of an election to participate in an ARP prior to the completion of that six-month waiting period.

(b) Notwithstanding subsection (a) of this section, if PERS receives a notification of an election to participate in an ARP, active membership in PERS shall cease as of the effective date of the election.

(4) A vested PERS Chapter 238 Program or OPSRP member electing to participate in an ARP, who is not concurrently an active member of PERS with another PERS participating employer, may petition PERS to have the member’s PERS account(s) transferred directly to the ARP.

(a) A transfer of eligible funds under this section shall be transferred directly to the ARP by PERS and shall not be made available to the employee while employed by the public employer, or the employer’s controlled group, that offers the ARP in which the employee has elected participation.

(b) A transfer of eligible funds from the member’s PERS account(s) as provided in subsection (a) of this section shall not include any reserves of any PERS-participating employer.

(5) A PERS member electing to participate in an ARP who has not separated from service in any position with the public employer, or the employer’s controlled group, that offers the ARP in which the employee has elected participation, shall not be eligible to withdraw any non-transferred member’s PERS accounts, except as provided in section (4) of this rule.

(6) A transfer of a member’s PERS account(s) to an ARP shall be in compliance with all applicable Internal Revenue Code provisions and related Treasury regulation governing qualified pension plans. The transfer may occur only if the ARP:

(a) Is a qualified plan under the Internal Revenue Code;

(b) Is capable of accepting funds transferred under the provisions of section (4) of this rule without the transfer being treated as a taxable event under the Internal Revenue Code; and

(7) The date of distribution of a member’s regular account defined in ORS 238.250, variable account defined in ORS 238.260, and Employee Pension Stability Account under ORS 238A.353 to an ARP, as provided for in section (4) of this rule shall be the later of:

(a) The first of the calendar month following the date of receipt by PERS of a copy of the election if such copy is received by PERS on or before the fifteenth of a calendar month; or

(b) The first of the second calendar month following the date of receipt by PERS of a copy of the election if such copy is received on or after the 16th of a calendar month.

(8) The date of distribution of a member’s IAP account(s) under ORS 238A.350 to an ARP, as provided for in section (4) of this rule will be the date of the actual distribution.

History

Statutory/Other Authority: ORS 238.650 & ORS 238A.450
Statutes/Other Implemented: ORS 237.750, ORS 238.015, ORS 238A.100, ORS 238A.300 & ORS 353.250
PERS 6-2021, amend filed 07/23/2021, effective 07/23/2021
PERS 9-2020, amend filed 06/23/2020, effective 06/23/2020
PERS 4-2005, f. and cert. ef. 1-31-05
PERS 2-1999, f. & cert. ef. 5-13-99
PERS 5-1998, f. & cert. ef. 5-22-98

Or. Admin. R. 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 its contracting activity:

(a) OAR chapter 137, division 46 — General Provisions Related to Public Contracting: 137-046-0100, 137-046-0110, 137-046-0200, 137-046-0252, and 137-046-0400 through 137-046-0480; and

(b) OAR chapter 137, division 47 — Public Procurements for Goods or Services: 137-047-0100, 137-047-0260 through 137-047-0670, 137-047-0700 through 137-047-0760 (excluding provisions governing judicial review), and 137-047-0800. Judicial review of decisions relating to any protest is governed by the Oregon Administrative Procedures Act, ORS Chapter 183.

(2) For PERS’ purposes, references in the Model Public Contract Rules to the Director of the Oregon Department of Administrative Services shall be applied as references to the PERS Executive Director.

(3) Model Public Contract rules other than those identified in section (1) of this rule do not apply to PERS.

History

Statutory/Other Authority: ORS 238.650, 238A.450 & 279A.065
Statutes/Other Implemented: ORS 279A & 279B
PERS 13-2012, f. & cert. ef. 12-5-12

Or. Admin. R. 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 Revenue Code (IRC) Section 401(a), and to implement ORS Chapters 238 and 238A by establishing limits on contributions and benefits under the Public Employees Retirement System (PERS).

(2) Definitions in general for OAR 459-005-0500 to 459-005-0799:

(a) “Member” shall have the same meaning as provided in ORS 238.005 with respect to members covered by ORS Chapter 238 and as provided in ORS 238A.005 with respect to members covered by ORS Chapter 238A.

(b) "Employment" means service as an employee as defined in OAR 459-005-0001(12).

(d) "PERS" shall have the same meaning as provided in OAR 459-005-0001(24).

(e) "Defined contribution plan (DC)" means a plan which provides for an individual account for each participant and for benefits based solely on the amount contributed to the participant's account, and any income, expenses, gains and losses, and any forfeitures of accounts of other participants which may be allocated to such participant's account. For purposes of IRC Section 414(k), the individual account program under ORS Chapter 238A shall be treated as a DC plan for the purposes of IRC Sections 72(d) and 415.

(f) "Defined benefit plan (DB)" means a plan which is not a defined contribution plan. For purposes of IRC Section 414(k), the pension programs under ORS Chapters 238 and 238A shall be treated as part of a defined benefit plan for purposes of IRC Sections 72(d) and 415.

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

History

Statutory/Other Authority: ORS 238.630(3)(h), 238.305 & 238.650
Statutes/Other Implemented: ORS 238
PERS 8-2005, f. & cert. ef. 2-22-05
PERS 31-2004(Temp), f. & cert. ef. 12-15-04 thru 6-1-05
PERS 5-1999, f. & cert. ef. 11-15-99

Or. Admin. R. 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 earned before May 1, 2013, will receive an annual COLA based on ORS 238.360 (2011) or 238A.210 (2011).

(b) Creditable service or retirement credit earned on or after May 1, 2013, and before October 1, 2013, will receive an annual COLA based on Chapter 53, Oregon Laws 2013.

(c) Creditable service or retirement credit earned on or after October 1, 2013, will receive an annual COLA based on ORS 238.360 (2013) or 238A.210 (2013).

(2) The member’s prorated periods in section (1) of this rule will be multiplied by the appropriate annual COLA percentage for the same periods to determine the blended annual COLA percentage rate that is applied to a yearly allowance, pension, or benefit. The resulting annual COLA amount is divided by 12 to determine the adjustment to the monthly allowance, pension, or benefit.

(3) A beneficiary’s annual COLA percentage rate will be based on the associated member’s creditable service time.

(4) COLA increases end when the recipient is no longer eligible to receive a monthly allowance, pension, or benefit.

History

Statutory/Other Authority: ORS 238.650 & 238A.450
Statutes/Other Implemented: ORS 238.360, 238.575, 238A.210 & OL 2013 & Ch. 53
PERS 10-2015, f. & cert. ef. 9-25-15
PERS 4-2014, f. & cert. ef. 3-31-14

Or. Admin. R. 459-005-0525 Ceiling on Compensation for Purposes of Contributions and Benefits

(1)This administrative ruleshall be construed consistently with the requirements of theInternal Revenue Code (IRC) Section 401(a)(17) relating to the limitation on annual compensation allowable for determining contribution and benefits under ORS Chapters 238 and 238A.

(2) For purposes of this rule:

(a) “Annual compensation” means “salary,” as defined in ORS 238.005 and 238.205 with respect to Chapter 238 and in 238A.005 with respect to Chapter 238A paid to the member during a calendar year or other 12-month period, as specified in this rule.

(b) “Eligible participant” means a person who first becomes a member of PERS before January 1, 1996.

(c) “Employer” means a “public employer” as defined in ORS 238.005, for the purposes of this rule as it applies to Chapter 238. For the purposes of this rule as it applies to Chapter 238A, an “employer” means a “participating public employer” as defined in 238A.005.

(d) “Noneligible participant” means a person who first becomes a member of PERS after December 31, 1995.

(e) “Participant” means an active or inactive member of PERS.

(3) For eligible participants, the limit set forth in IRC Section 401(a)(17) shall not apply for purposes of determining the amount of employee or employer contributions that may be paid into PERS, and for purposes of determining benefits due under ORS Chapters 238 and 238A. The limit on annual compensation for eligible participants shall be no less than the amount which was allowed to be taken into account for purposes of determining contributions or benefits under former ORS 237.001 to 237.315 as in effect on July 1, 1993, for calendar years before 2020. Beginning in 2026, the limit on annual compensation taken into account for purposes of determining contributions or benefits under ORS Chapter 238 or 238A for eligible participants shall be measured on a calendar year basis, and shall not exceed $245,724 per calendar year.

(4) For noneligible participants, the annual compensation taken into account for purposes of determining contributions or benefits under ORS Chapters 238 and 238A shall be measured on a calendar year basis, and shall not exceed $245,724 per calendar year beginning in 2026.

(5) A participant employed by two or more agencies or instrumentalities of a PERS participating employer in a calendar year, whether concurrently or consecutively, shall have all compensation paid by the employer combined for determining the allowable annual compensation under this rule.

(6) PERS participating employers shall monitor annual compensation and contributions to assure that reports and remitting are within the limits established by this rule and IRC Section 401(a)(17).

(7) For a participant, Final Average Salary under ORS 238.005 with respect to Chapter 238 and under 238A.130 with respect to Chapter 238A shall be calculated based on the amount of compensation that is allowed to be taken into account under this rule.

(8) With respect to ORS Chapter 238, creditable service, as defined in 238.005, shall be given for each month that an active member is paid salary or wages and allowable contributions have been remitted to PERS, or would be remitted but for the annual compensation limit in this rule. With respect to Chapter 238A, retirement credit as determined in 238A.140, shall be given for each month that an active member is paid salary or wages and allowable contributions have been remitted to PERS, or would be remitted but for the annual compensation limit in this rule.

(9) Beginning in 2020, the limitation on annual compensation under sections (3) and (4) of this rule will be indexed by cost-of-living adjustments in subsequent years as provided in the Consumer Price Index for All Urban Consumers, West Region (All Items), as published by the Bureau of Labor Statistics of the United States Department of Labor.

History

Statutory/Other Authority: ORS 238.630, 238.650, 238A.370 & 238A.450
Statutes/Other Implemented: ORS 238.005 & ORS 238A.005
PERS 6-2026, amend filed 04/03/2026, effective 04/03/2026
PERS 5-2025, amend filed 03/31/2025, effective 03/31/2025
PERS 3-2024, amend filed 04/01/2024, effective 04/01/2024
PERS 7-2023, amend filed 04/04/2023, effective 04/04/2023
PERS 4-2022, amend filed 03/28/2022, effective 03/28/2022
PERS 4-2021, amend filed 03/29/2021, effective 03/29/2021
PERS 8-2019, amend filed 12/06/2019, effective 12/06/2019
PERS 3-2019, amend filed 04/01/2019, effective 04/01/2019
PERS 4-2018, amend filed 04/03/2018, effective 04/03/2018
PERS 1-2017, f. & cert. ef. 1-27-17
PERS 7-2015, f. & cert. ef. 5-29-15
PERS 3-2014, f. & cert. ef. 1-31-14
PERS 3-2013, f. & cert. ef. 3-29-13
PERS 1-2012, f. & cert. ef. 2-1-12
PERS 14-2008, f. & cert. ef. 11-26-08
PERS 19-2005, f. 11-1-05, cert. ef. 1-1-06
PERS 8-2005, f. & cert. ef. 2-22-05
PERS 31-2004(Temp), f. & cert. ef. 12-15-04 thru 6-1-05
PERS 11-2002, f. & cert. ef. 7-17-02
PERS 5-1999, f. & cert. ef. 11-15-99
PERS 4-1995, f. 11-14-95, cert. ef. 12-1-95

Or. Admin. R. 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 this rule, all defined benefit plans of an employer, including plans that have been terminated, shall be treated as one defined benefit plan.

(2) Defined Contribution Plans. For purposes of OAR 459-005-0545, Annual Addition Limitation and, before January 1, 2000, for purposes of section (3) of this rule, all defined contribution plans of an employer, including plans that have been terminated, shall be treated as one defined contribution plan.

(3) Combined Plan Limitation. If any member also participates in a defined contribution plan maintained by the same employer, the sum of the defined benefit plan fraction and the defined contribution plan fraction for any calendar year before the 2000 calendar year shall not exceed 1.0.

(a) Defined Benefit Plan Fraction. For purpose of this section, the defined benefit fraction is a fraction with the following numerator and denominator:

(A) The numerator is the member’s projected annual benefit under the plan, determined as of the close of the year.

(B) The denominator is the lesser of the following amounts:

(i) The product of 1.25, multiplied by the applicable dollar limitation for the calendar year, as defined in OAR 459-005-0535, Annual Benefit Limitation; or

(ii) Before January 1, 1995, the product of 1.4 multiplied by the member’s 100 percent (100%) of compensation limitation under IRC Section 415(b)(1)(B) for the calendar year.

(b) The Defined Contribution Plan Fraction. For purposes of this section, the defined contribution plan fraction is a fraction with the following numerator and denominator:

(A) The numerator is the sum of the annual additions to the member’s account as of the close of the calendar year; and

(B) The denominator is the sum of the lesser of the following amounts determined for the calendar year and for each prior calendar year of service with the employer:

(i) The product of 1.25, multiplied by the dollar limitation in effect under IRC Section 415(c)(1)(A) for that calendar year; or

(ii) The product of 1.4, multiplied by the member’s 25 percent (25%) of compensation limitation under IRC Section 415(c)(1)(B) for the calendar year.

(4) Employer. For purposes of the limitations in this rule, OAR 459-005-0535, Annual Benefit Limitation, and OAR 459-005-0545, Annual Addition Limitation, all employers required to be aggregated under IRC Section 414(b) or (c), as modified by IRC Section 415(h), shall be treated as a single employer.

(5) Reduction in Benefit to Comply With Limitations. If benefits or contributions under another retirement plan, when combined with the benefits under PERS, exceed the limitations in this rule, the benefits under PERS shall be reduced to the extent of the excess and the benefits or contributions under the other plan shall stand.

(6) Retroactive Application. Except as otherwise provide in this rule, this rule shall be applied retroactively to January 1, 1987.

History

Statutory/Other Authority: ORS 238.630 & 238.650
Statutes/Other Implemented: ORS 238.005 - 238.715
PERS 5-1999, f. & cert. ef. 11-15-99

Or. Admin. R. 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 issued thereunder.

(2) Annual Benefit Limitation. The benefits payable to any member for a calendar year, when expressed as an annual benefit, shall not exceed the applicable dollar limitation for that year.

(3) Applicable Dollar Limitation. For purposes of this rule, the "applicable dollar limitation" for each calendar year is the limitation in effect under IRC Section 415(b)(1)(A), with the adjustment described as follows:

(a) Cost-of-Living Adjustments. The limitation under IRC Section 415(b)(1)(A) shall be adjusted for cost of living in accordance with IRC Section 415(d) and Treasury Regulation Section 1.415(a)-1(d)(3)(v)(C). The adjustment applies to the applicable dollar limitation for years:

(A) Between separation and retirement of a member; and

(B) After the member’s effective retirement date.

(b) Reduction for Retirement Before Age 62. Except as otherwise provided in the paragraphs (A), (B), and (C) of this subsection, if the member's benefit begins before the member reaches 62 years of age, the applicable dollar limitation shall be adjusted as provided for in IRC Section 415(b)(2)(C).

(A) This reduction shall not apply to any member who has at least 15 years of creditable service as a full-time employee of a police department or fire department which is organized and operated by the state or a political subdivision of the state to provide police protection, firefighting services, or emergency medical services for any area within the jurisdiction of the state or political subdivision.

(B) This reduction shall not apply to disability retirement allowances or death benefits.

(C) This reduction shall not apply to any portion of a member's annual benefit that is derived from contributions to purchase service credit, as defined in OAR 459-005-0540, Permissive Service Credit.

(c) Reduction for Less than 10 Years of Membership. Except as provided in paragraphs (A) and (B) of this subsection, if the member has less than 10 years of active membership in PERS, the applicable dollar limitation shall be reduced as provided for under IRC Section 415(b)(5)(A).

(A) For the purposes of this section, a member with less than one year of active membership shall be treated as having one year of active membership.

(B) The reduction under this section shall not apply to disability retirement allowances or death benefits.

(d) Increase for Retirement After Age 65. If the member's benefit begins after the member reaches 65 years of age, the applicable dollar limitation shall be increased as provided for under IRC Section 415(b)(2)(D).

(4) Annual Benefit. For purposes of this rule, the "annual benefit" is the benefit payable to a member under ORS Chapter 238 and the pension program under Chapter 238A for a calendar year, excluding any benefit payable under 238.485 through 238.492, and adjusted as described in this section.

(a) Excludable Benefits. The annual benefit shall not include the portion of the member's benefit that is attributable to:

(A) After-tax member contributions, other than member payments to purchase permissive service credit as defined in OAR 459-005-0540, Permissive Service Credit;

(B) Rollover contributions, if such contributions are permitted;

(D) Purchases of permissive service credit, as defined in OAR 459-005-0540, Permissive Service Credit, if all of the member's payments to purchase permissive service credit are treated as annual additions for purposes of 459-005-0545, Annual Addition Limitation, in the year purchased.

(b) Adjustment to Straight Life Annuity. The member's benefit shall be adjusted to an actuarially equivalent straight life annuity beginning at the same age. For purposes of this adjustment, the following values are not taken into account:

(A) The value of a qualified spouse joint and survivor annuity to the extent that the value exceeds the sum of the value of a straight life annuity beginning on the same day, and the value of any post-retirement death benefits that would be payable even if the annuity was not in the form of a joint survivor annuity.

(B) The value of benefits that are not directly related to retirement benefits, such as pre-retirement disability benefits and post-retirement medical benefits.

(C) The value of post-retirement cost of living increases, to the extent they do not exceed the increase provided under IRC Section 415(d) and Treasury Regulation Section 1.415(d)-1.

(5) Interest Rates. The following interest rates shall apply for purposes of adjusting the applicable dollar limitation under section (3) of this rule and the annual benefit under section (4) of this rule.

(a) For purposes of reducing the applicable dollar limitation for retirement before 62 years of age under subsection (3)(b) of this rule, the interest rate shall be the greater of five percent or PERS' assumed earnings rate.

(b) For purposes of determining the portion of a member's benefits attributable to after-tax member contributions under paragraph (4)(a)(A) of this rule, the interest rate shall be the greater of 5 percent or the PERS' assumed earnings rate.

(c) For purposes of adjusting the member's annual benefits under section (4) of this rule (other than the adjustment for after-tax member contributions), the interest rate shall be the greater of five percent or PERS' assumed earnings rate.

(d) For purposes of increasing the applicable dollar limitation for retirement after 65 years of age under subsection (3)(d) of this rule, the interest rate shall be the lesser of five percent or PERS' assumed earnings rate.

(6) Mortality Table. For purposes of adjusting the applicable dollar limitation and annual benefit under sections (3) and (4) of this rule, the mortality table used shall be the table prescribed pursuant to the Internal Revenue Code.

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

History

Statutory/Other Authority: ORS 238.630, 238.650 & 238A.125
Statutes/Other Implemented: ORS 238.005 - 238.715
PERS 8-2017, amend filed 12/01/2017, effective 12/01/2017
PERS 14-2008, f. & cert. ef. 11-26-08
PERS 8-2005, f. & cert. ef. 2-22-05
PERS 31-2004(Temp), f. & cert. ef. 12-15-04 thru 6-1-05
PERS 11-2002, f. & cert. ef. 7-17-02
PERS 3-2000, f. & cert. ef. 3-10-00
PERS 5-1999, f. & cert. ef. 11-15-99

Or. Admin. R. 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 under OAR 459-005-0535, Annual Benefit Limitation, determined by treating the accrued benefit derived from all of the member’s contributions to purchase permissive service credit as part of the member’s annual benefit; or

(b) The annual addition limitation under OAR 459-005-0545, Annual Addition Limitation, determined by treating all of the member’s contributions to purchase permissive service credit annual additions.

(2) Definition of Permissive Service Credit. “Permissive service credit” means service credit that satisfies the requirements in subsection (a) of this section and is not excluded under subsection (b) of this section.

(a) Permissive service credit generally means service credit that:

(A) Is recognized by PERS as the retirement credit for purposes of calculating a member’s benefits;

(B) Has not previously been credited to the member; and

(C) Is credited to the member only if the member makes a voluntary additional contribution in an amount calculated under the terms of the plan, which does not exceed the amount necessary to fund the benefit attributable to the purchased service credit.

(b) Notwithstanding subsection (a) of this section, “permissive service credit” does not include:

(A) Previously forfeited service that is reinstated under ORS 238.105 or 238.115;

(B) Periods of military service that are purchased under ORS 238.156; or

(3) Nonqualified Service. Nonqualified service purchased by a member shall be treated as permissive service credit only if the member purchases no more than five years of nonqualified service, and the member has at least five years of active membership before purchasing the nonqualified service. For this purpose, “nonqualified service” means any service other than the following:

(a) Military service (other than military service purchased under ORS 238.156);

(b) Service as an employee with one of the following employers, provided that the employee does not receive a retirement benefit from the same service under another plan:

(A) A governmental employer;

(B) A public, private, or sectarian school that provides elementary or secondary education; or

(4) Retroactive Application. The provisions of this rule shall be applied retroactively to January 1, 1998.

History

Statutory/Other Authority: ORS 238.630 & 238.650
Statutes/Other Implemented: ORS 238.005 - 238.715
PERS 5-1999, f. & cert. ef. 11-15-99

Or. Admin. R. 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 thereunder.

(2) Except as otherwise provided in this rule, a member’s annual additions to PERS for any calendar year after 2026 may not exceed $72,000 (as adjusted under IRC Section 415(d)).

(3) For purposes of this rule, the term “annual additions” has the same meaning as under IRC Section 415(c)(2).

(4) The following special rules shall apply with respect to purchases of permissive service credit, as defined in OAR 459-005-0540, Permissive Service Credit:

(a) If a member’s after-tax contributions to purchase permissive service credit are included in the member’s annual additions under section (3) of this rule, the member shall not be treated as exceeding the limitation under section (2) of this rule solely because of the inclusion of such contributions.

(b) With respect to any eligible participant, the annual addition limitation in section (2) of this rule shall not be applied to reduce the amount of permissive service credit to an amount less than the amount that could be purchased under the terms of the plan as in effect on August 5, 1997. As used in this subsection, the term “eligible participant” includes any individual who became an active member before January 1, 2000.

(5) If a member makes a payment to PERS to purchase retirement credit for service in the Armed Forces pursuant to 238.156(3)(c) or 238A.150 and the service is covered under Internal Revenue Code Section 414(u), the following special rules shall apply for purposes of applying the annual addition limitation in section (2) of this rule:

(a) The payment shall be allocated as an annual addition to the calendar year to which it relates; and

(b) The member shall be treated as having received the following amount of compensation for the period of service in the Armed Forces to which the payment relates:

(A) The amount of compensation the member would have received from a participating employer had the member not been in the Armed Forces; or

(B) If the amount in paragraph (A) of this subsection is not reasonably certain, the member’s average compensation from the participating employer during the 12-month period immediately preceding the period of service in the Armed Forces (or, if shorter, the period of employment immediately preceding the period of service in the Armed Forces).

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

History

Statutory/Other Authority: ORS 238.630, 238.650, 238A.370 & 238A.450
Statutes/Other Implemented: ORS 238.005–238.715 & 238A.370
PERS 6-2026, amend filed 04/03/2026, effective 04/03/2026
PERS 5-2025, amend filed 03/31/2025, effective 03/31/2025
PERS 3-2024, amend filed 04/01/2024, effective 04/01/2024
PERS 7-2023, amend filed 04/04/2023, effective 04/04/2023
PERS 4-2022, amend filed 03/28/2022, effective 03/28/2022
PERS 4-2021, amend filed 03/29/2021, effective 03/29/2021
PERS 5-2020, amend filed 05/29/2020, effective 05/29/2020
PERS 3-2019, amend filed 04/01/2019, effective 04/01/2019
PERS 4-2018, amend filed 04/03/2018, effective 04/03/2018
PERS 1-2017, f. & cert. ef. 1-27-17
PERS 7-2015, f. & cert. ef. 5-29-15
PERS 3-2014, f. & cert. ef. 1-31-14
PERS 3-2013, f. & cert. ef. 3-29-13
PERS 1-2012, f. & cert. ef. 2-1-12
PERS 14-2008, f. & cert. ef. 11-26-08
PERS 8-2005, f. & cert. ef. 2-22-05
PERS 31-2004(Temp), f. & cert. ef. 12-15-04 thru 6-1-05
PERS 11-2002, f. & cert. ef. 7-17-02
PERS 5-1999, f. & cert. ef. 11-15-99

Or. Admin. R. 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 Regulations and Internal Revenue Service rulings and other interpretations issued thereunder, including Treasury Regulation Sections 1.401(a)(9)-1 through 1.401(a)(9)-9. The provisions of this administrative rule and any other statute or administrative rule reflecting the required minimum distribution requirements of IRC Section 401(a)(9) shall override any distribution options that are inconsistent with IRC Section 401(a)(9).

(2) Distributions to Members. Each member's entire benefit under PERS shall be distributed to the member, beginning no later than the required beginning date, over the member's lifetime (or the joint lives of the member and a designated beneficiary), or over a period not extending beyond the member's life expectancy (or the joint life expectancies of the member and a designated beneficiary).

(a) Required Beginning Date. For purposes of this section, the "required beginning date" is April 1 of the calendar year after the later of the following:

(A) The calendar year in which the member reaches:

(i) 70-1/2 years of age in 2019 or earlier;

(ii) 72 years of age in calendar years 2020 through 2022;

(iii) 73 years of age in calendar years 2023 through 2032; and

(iv) 75 years of age beginning in 2033 and later; or

(B) The calendar year in which the member retires.

(b) Designated Beneficiary. For purposes of this section, a "designated beneficiary" means any individual designated as a beneficiary by the member. If the member designates a trust as a beneficiary, the individual beneficiaries of the trust shall be treated as designated beneficiaries if the trust satisfies the requirements set forth in Treasury Regulation Section 1.401(a)(9)-4.

(c) Calculation of Life Expectancies. For purposes of this section and Chapter 238 benefits and the Pension Program, which are part of the DB component of PERS, life expectancies shall not be recalculated after the initial determination, unless otherwise required by Treasury Regulation Section 1.401(a)(9)-5, Q&A-4 and Q&A-5. For purposes of this section and the Individual Account Program, life expectancies shall be recalculated but no more frequently than annually, unless otherwise required by Treasury Regulation Section 1.401(a)(9)-5, Q&A-5.

(d) Limitations on Benefit Changes. A retired member who has had a required beginning date shall not change a beneficiary designation, benefit option election, or any other designation or election except as permitted under Treasury Regulation Sections 1.401(a)(9)-4 and 1.401(a)(9)-6.

(e) Limitations on Conversion of Joint Annuity to Single Life Annuity Following Divorce. A retired member who has had a required beginning date may elect to convert a joint and survivor annuity under Option 2A or 3A under Chapter 238 to a single life annuity by reason of the member's divorce from the joint annuitant, subject to the provisions of Treasury Regulation Section 1.401(a)(9)-6. This section applies to ORS Chapter 238 benefits notwithstanding ORS 238.305(5) and 238.325(3).

(f) Limitations on Survivor Annuity Elections. Except as otherwise required by a domestic relation order under ORS 238.465, if a member elects a 100 percent (100%) joint and survivor annuity (Option 2 or 2A under ORS 238.305(1) and under 238A.190(1)(a)) and designates a nonspouse beneficiary who is more than ten years younger than the member as calculated under Treasury Regulation Section 1.401(a)(9)-6, Q&A-2, the benefit shall be actuarially adjusted to provide for a reduced survivor annuity benefit to the extent necessary to comply with federal requirements for qualified retirement plans.

(g) Limitation on Period-Certain Annuity Election (Chapter 238 only). If a member elects a 15-year certain option (Option 4 under ORS 238.305(1)), and attains age 85 or older during the calendar year in which the benefits commence, the benefit shall be actuarially adjusted to provide for a shorter payout period to the extent necessary to comply with federal requirement for qualified retirement plans.

(h) Limitation on Selection of IAP Benefit Options. Benefit payment options selected under the Individual Account Program shall be considered as payment options under a DC plan and must comply with the requirements of Treasury Regulation Section 1.401(a)(9)-5.

(3) Distributions to Beneficiaries of Retired Members. If a retired member dies after annuity benefit payments have begun under Chapter 238 or the Pension Program are required to begin under section (2) of this rule, any death benefits shall be distributed at least as rapidly as under the distribution method being used at the member's death.

(4) Distributions to Beneficiaries of Active and Inactive Members. If an active or inactive member dies before annuity payments have begun under Chapter 238 or the Pension Program are required to begin under section (2) of this rule, any death benefits shall be distributed by December 31 of the calendar year that contains the fifth anniversary of the member's death, except as provided in the following:

(a) Distributions to Designated Beneficiaries. The five-year rule shall not apply to any death benefit that is payable to a member's designated beneficiary, if:

(A) The benefit is distributed over the designated beneficiary's lifetime or over a period not extending beyond the designated beneficiary's life expectancy; and

(B) The distributions begin no later than December 31 of the calendar year that contains the first anniversary of the member's death.

(b) Distributions to Spouse Designated Beneficiaries. Notwithstanding subsection (a) of this section, if the designated beneficiary is the member's surviving spouse as defined by the Internal Revenue Code:

(A) The commencement of distributions under subsection (a)(B) of this section may be delayed until December 31 of the calendar year in which the member would have reached the age specified in section (2)(a)(A) of this rule; and

(B) If the surviving spouse dies after the member's death but before the distributions to the spouse have begun, the rules of this section shall apply to any death benefit payable to any contingent beneficiary as if the spouse were the member. Notwithstanding the foregoing, however, this subsection shall not apply to any death benefit payable to a surviving spouse of the deceased member's surviving spouse.

(5) The provisions of this rule are effective on January 1, 2003.

History

Statutory/Other Authority: ORS 238.630, 238.650, 238A.130, 238A.170 & 238A.410
Statutes/Other Implemented: ORS 238.005 - 238.715
PERS 9-2023, amend filed 07/28/2023, effective 07/28/2023
PERS 7-2023, amend filed 04/04/2023, effective 04/04/2023
PERS 2-2022, amend filed 01/31/2022, effective 01/31/2022
PERS 21-2005, f. & cert. ef. 11-1-05
PERS 8-2005, f. & cert. ef. 2-22-05
PERS 31-2004(Temp), f. & cert. ef. 12-15-04 thru 6-1-05
PERS 5-1999, f. & cert. ef. 11-15-99

Or. Admin. R. 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 eligible designated beneficiary; or

(B) A trust that satisfies the requirements in section (2) of this rule.

(b) “Eligible Designated Beneficiary” means a natural person designated as a beneficiary by the member and who is determined on the date of the member’s death as:

(A) The surviving spouse;

(B) A child of the plan participant who has not reached majority;

(D) A chronically ill individual within the meaning of section IRC 7702B(c)(2); or

(E) Any other individual who is not more than 10 years younger than the plan participant.

(2) A trust as beneficiary. If a trust is designated as a beneficiary, the individual beneficiaries of the trust will be treated as designated beneficiaries as defined in paragraph (1)(a)(B) if by December 31 of the calendar year following the death of a person who designated a trust as beneficiary, the trust satisfies the following conditions:

(a) The trust must be irrevocable, or become irrevocable by its terms at the time of the person’s death;

(b) The trust’s beneficiaries must be natural persons who are identifiable from the trust instrument; and

(A) A list of all beneficiaries of the trust, including contingent beneficiaries, along with a description of the portion to which they are entitled and any conditions on their entitlement, all corrected certifications of trust amendments, and a copy of the trust instrument if requested by PERS; or

(B) A copy of the trust instrument and copies of any amendments after they are adopted.

(3) Distributions to Beneficiaries of Retired Members under the IAP. If a retired member dies after the required beginning date while receiving installment payments on and after January 1, 2026, the remaining account balance shall be distributed to a beneficiary or beneficiaries in a lump sum payment.

(4) Distributions to designated beneficiaries and eligible designated beneficiaries of Active and Inactive Members under the IAP. If an active or inactive member dies before the required beginning date, any death benefits shall be distributed by no later than December 31 of the calendar year that contains the tenth anniversary of the member's death.

(5) Distributions under the IAP when there is no eligible designated beneficiary or designated beneficiary are as follows:

(a) If a member dies before the required beginning date with no eligible designated beneficiary or designated beneficiary as defined in section (1) of this rule, the total account balance must be distributed by December 31 of the calendar year containing the fifth anniversary of the member’s death.

(b) If the member dies after the required beginning date with no eligible designated beneficiary or designated beneficiary as defined in section (1) of this rule, the total account balance must be distributed no longer than the member’s life expectancy and the distribution must begin no later than December 31 of the calendar year immediately following the calendar year of the member's death.

History

Statutory/Other Authority: ORS 238A.410 & 238A.450
Statutes/Other Implemented: ORS 238A.005 – 238A.410
PERS 15-2025, amend filed 12/05/2025, effective 12/05/2025
PERS 9-2023, adopt filed 07/28/2023, effective 07/28/2023

Or. Admin. R. 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 pursuant to ORS 238.222.

(2)(a) Except as provided in subsection (c) of this section, PERS must receive the trustee-to-trustee transfer within the time period established in the particular statute for restoration of creditable service or obtaining retirement credit included in ORS 238.222(1).

(b) A trustee-to-trustee transfer received by PERS outside the time period determined under subsection (a) of this section for the transfer will be returned to the eligible retirement plan from which the transfer was received.

(c) If the cost of restoration of creditable service or obtaining retirement credit is adjusted and PERS determines that the amount required is greater than the amount originally received, a trustee-to-trustee transfer may be made to remit the additional amount required.

(d) Nothing in ORS 238.222 or this rule shall be construed to provide an extension of time for restoration of forfeited creditable service or obtaining retirement credit outside the time permitted under the relevant statutes.

(3) If PERS receives a trustee-to-trustee transfer and determines that all or a portion of the transfer may not be accepted by PERS and must be returned, PERS will transfer the amount back to the eligible retirement plan from which the transfer was received.

(4) The provisions of this rule are effective on September 1, 2011.

History

Statutory/Other Authority: ORS 238.222 & 238.650
Statutes/Other Implemented: ORS 238.222 and section 2, Chapter 971 & Oregon Laws 1999
PERS 2-2011, f. & cert. ef. 6-1-11

Or. Admin. R. 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 administrative rule of the Public Employees Retirement Board other than OAR 459-005-0590 to 459-005-0599, a distributee may elect, in accordance with 459-005-0599, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.

(3) The direct rollover rule OAR 459-005-0590 to 459-005-0599 shall be interpreted and administered in accordance with Code Section 401(a)(31) and any applicable regulations and administrative rulings thereunder.

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

History

Statutory/Other Authority: ORS 238.650 & 238A.430
Statutes/Other Implemented: ORS 238.005 - 238.715
PERS 8-2005, f. & cert. ef. 2-22-05
PERS 31-2004(Temp), f. & cert. ef. 12-15-04 thru 6-1-05
PERS 11-1998, f. & cert. ef. 12-17-98

Or. Admin. R. 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 rollover distribution by PERS to an eligible retirement plan specified by the distributee.

(3) A "distributee" includes a PERS member, the surviving spouse of a deceased PERS member, a non-spouse beneficiary of the member that is a designated beneficiary under Code Section 402(c)(11), and the current or former spouse of a PERS member who is the alternate payee under a domestic relations order that satisfies the requirements of ORS 238.465 and the rules adopted thereunder.

(4) An "eligible retirement plan" means any one of the following:

(a) An individual retirement account or annuity described in Code Section 408(a) or (b), including a Roth IRA as described in Code Section 408A;

(b) An annuity plan described in Code Section 403(a) that accepts the distributee's eligible rollover distribution;

(d) An eligible deferred compensation plan described in Code Section 457(b) which is maintained by an eligible employer described in Code Section 457(e)(1)(A) and accepts the distributee's eligible rollover distribution.

(e) An annuity contract described in Code Section 403(b) that accepts the distributee's eligible rollover distribution.

(f) For the purposes of ORS 237.650(3), the individual employee account maintained for a member under the Individual Account Program as set forth under ORS 238A.350(2); and

(g) For the purposes of ORS 237.655(2), the state deferred compensation program.

(5) An "eligible rollover distribution" means any distribution of all or any portion of a distributee's PERS benefit, except that an eligible rollover distribution shall not include:

(a) Any distribution that is one of a series of substantially equal periodic payment made no less frequently than annually for the life (or life expectancy) of the distributee or the joint lives (or life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more;

(b) Any distribution to the extent that it is a required or minimum distribution under Code Section 401(a)(9).

(6) A "recipient plan" means an eligible retirement plan that is designated by a distributee to receive a direct rollover.

(7) The provisions of this rule are effective on January 1, 2008.

History

Statutory/Other Authority: ORS 238.650 & 238A.450
Statutes/Other Implemented: ORS 238 & 238A
PERS 11-2008, f. & cert. ef. 7-31-08
PERS 8-2008(Temp), f. & cert. ef. 5-21-08 thru 11-10-08
PERS 9-2007, f. & cert. ef. 7-26-07
PERS 5-2007(Temp), f. & cert. ef. 2-16-07 thru 8-14-07
PERS 8-2005, f. & cert. ef. 2-22-05
PERS 3-2005, f. & cert. ef 1-31-05
PERS 31-2004(Temp), f. & cert. ef. 12-15-04 thru 6-1-05
PERS 3-2002, f. & cert. ef. 3-26-02
PERS 1-2002(Temp), f. & cert. ef. 1-11-02 thru 6-28-02
PERS 11-1998, f. & cert. ef. 12-17-98

Or. Admin. R. 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 distribution paid in a direct rollover to only one eligible retirement plan.

(b) A distributee may elect a direct rollover only when his or her eligible rollover distribution(s) during a calendar year is reasonably expected to total $200 or more.

(c) A distributee may elect to have part of an eligible rollover distribution be paid directly to the distributee, and to have part of the distribution paid as a direct rollover only if the member elects to have at least $500 transferred to the eligible retirement plan.

(2)(a) The provisions of subsection (1)(a) apply to any portion of a distribution, including after-tax employee contributions that are not includible in gross income.

(b) Any portion of a distribution that consists of after-tax employee contributions that are not includible in gross income may be transferred only to:

(A) An individual retirement account or annuity described in Code Section 408(a) or (b), including a Roth IRA; or

(B) An annuity contract described in Code Section 403(b) or a qualified defined contribution or defined benefit plan that agrees to separately account for the amounts transferred, including separate accounting for the pre-tax and post-tax amounts.

(c) The amount transferred shall be treated as consisting first of the portion of the distribution that is includible in gross income, determined without regard to Code Section 402(c)(1).

(3) The provisions of this rule are effective on January 1, 2008.

History

Statutory/Other Authority: ORS 238.650 & 238A.450
Statutes/Other Implemented: ORS 238 & 238A
PERS 11-2008, f. & cert. ef. 7-31-08
PERS 8-2008(Temp), f. & cert. ef. 5-21-08 thru 11-10-08
PERS 9-2007, f. & cert. ef. 7-26-07
PERS 5-2007(Temp), f. & cert. ef. 2-16-07 thru 8-14-07
PERS 8-2005, f. & cert. ef. 2-22-05
PERS 31-2004(Temp), f. & cert. ef. 12-15-04 thru 6-1-05
PERS 11-1998, f. & cert. ef. 12-17-98

Or. Admin. R. 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 Section 402(f), the written explanation shall include the following information:

(a) A statement that the distributee has the right to consider the decision of whether or not to elect a direct rollover for at least 30 days after the notice is provided;

(b) An explanation of the default rule set forth in section (5) of this rule; and

(2) Except as otherwise provided in sections (4) and (6) of this rule, an eligible rollover distribution shall not be paid, either to the distributee or to a recipient plan, less than 30 days or more than 180 days after the distributee has been provided with the written explanation described in section (1) of this rule.

(3)(a) Any direct rollover election shall be in writing and must be signed by the distributee or by his or her authorized representative pursuant to a valid power of attorney as described in OAR 459-005-0100 to 459-005-0140. The direct rollover election may be on forms furnished by PERS, or on forms submitted by recipient plan which shall include:

(A) Distributee’s full name;

(B) Distributee’s social security number;

(D) The distributee's account number with recipient plan, if available;

(E) Name and complete mailing address of recipient plan; and

(F) If the distributee is a non-spouse beneficiary of the member, the title of the recipient IRA account.

(b) The election shall include or be accompanied by a statement by the recipient plan's plan administrator that the plan will accept the direct rollover for the benefit of the distributee, including whether or not the recipient plan will accept, and account for separately, after-tax dollars.

(4) If a distributee affirmatively elects a distribution after having received the written election described in section (1) of this rule, PERS may make the distribution even if the initial 30-day period described in section (2) of this rule has not expired.

(5) If a distributee fails to affirmatively elect to make or not to make a direct rollover within at least 30 and no more than 180 days after notice is provided as described in section (1) of this rule, PERS shall pay the eligible rollover distribution directly to the distributee.

(6) Any series of payments that are eligible rollover distributions shall be governed by the provisions of sections (1), (2), (3), (4), and (5) of this rule for each payment made.

(7) For the purposes of this rule, "effective date of payment" means:

(a) The date inscribed on check or warrant; or

(b) The date of an electronic transfer/transaction to the recipient plan.

(8) The provisions of this rule are effective on January 1, 2007.

History

Statutory/Other Authority: ORS 238.650 & 238A.4500
Statutes/Other Implemented: ORS 238 & 238A
PERS 9-2007, f. & cert. ef. 7-26-07
PERS 5-2007(Temp), f. & cert. ef. 2-16-07 thru 8-14-07
PERS 21-2005, f. & cert. ef. 11-1-05
PERS 11-1998, f. & cert. ef. 12-17-98

Or. Admin. R. 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) Withholding for an overpayment or erroneous payment of benefit.

(d) Withholding in response to support liens in accordance with ORS 238.445.

(e) Withholding in response to Internal Revenue Service (IRS) liens.

(f) Withholding due to other administrable court orders.

(g) Withholding for a premium payment of a PERS-sponsored health insurance plan.

(h) Other voluntary withholdings authorized by the Board and elected by the member or beneficiary of the member.

(2) This rule does not apply when there is a payment to an alternate payee award under ORS 238.465, as provided in OAR 459-045-0070.

History

Statutory/Other Authority: ORS 238.715(9), 238.650 & 238A.450
Statutes/Other Implemented: ORS 238 and 238A
PERS 6-2015, f. & cert. ef. 5-29-15
PERS 14-1998, f. & cert. ef. 12-17-98

Or. Admin. R. 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;

(B) $0.50 per page for pages 11 through 50; and

(b) PERS will pay $35.00 for the cost of providing a compact disc with medical record data in place of providing printed materials to PERS.

(2) PERS will pay a provider $30.00 for completing and signing a PERS Medical Information Statement or Physician Statement of Current Status.

(3) PERS will not make advance payments to providers before medical records are received.

History

Statutory/Other Authority: ORS 238.650 & ORS 238A.450
Statutes/Other Implemented: ORS Chapter 238 & ORS Chapter 238A
PERS 5-2026, minor correction filed 03/04/2026, effective 03/04/2026
PERS 1-2016, f. & cert. ef. 1-29-16

Or. Admin. R. 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 if cost effective, a full recovery of all overpayments and erroneous payments. Staff shall attempt recovery of overpayments and erroneous payments in the most efficient method available and in the least amount of time possible.

(2) For the purposes of this rule:

(a) "Erroneous payment” means any payment that has been made from the Public Employees Retirement Fund in error, including a payment to a payee that is not entitled to receive the payment.

(b) “Good cause” means a cause beyond the reasonable control of the person. “Good cause” exists when it is established by satisfactory evidence that factors or circumstances are beyond the reasonable control of a rational and prudent person of normal sensitivity, exercising ordinary common sense.

(c) “Lump-sum payment” means any one-time distribution or payment made under ORS Chapters 238 or 238A, or any other law directing PERS to make a payment, including a retroactive adjustment, that is not scheduled to be paid to or on behalf of a payee on a regular monthly basis.

(d) “Monthly payment” means any gross pension, annuity, service or disability retirement allowance, death benefit, or other benefit under ORS Chapter 238 or 238A that is paid monthly to or on behalf of a payee.

(e) “Overpayment” refers to an amount that is in excess of the amount a payee is entitled to under ORS Chapters 238 and 238A.

(f) “Payee” means:

(A) A member, a trust established by the member, or the member’s estate;

(B) A member’s beneficiary, a trust established by the member’s beneficiary, or the estate of the member’s beneficiary;

(C) An alternate payee, as defined in OAR 459-045-0001(2), a trust established by an alternate payee, or the estate of an alternate payee;

(D) The beneficiary of an alternate payee, a trust established by the beneficiary of an alternate payee, or the estate of the beneficiary of an alternate payee; or

(E) Any other recipient of a benefit payment by PERS.

(3) In addition to the notice of an overpayment or erroneous payment to a payee required by ORS 238.715(4), PERS shall also send an explanation of the overpayment or erroneous payment; whether the Board asserts a right to assess interest, penalties and costs of collection; and a description of the manner in which the payee may appeal the determinations reflected in the explanation, if applicable.

(4) In determining the amounts owed by a payee and setting a repayment schedule under sections (5) or (6) of this rule, PERS shall reduce the amount owed by any lump-sum payment then owed by PERS to that payee. If the payee should subsequently become entitled to any lump sum payment, it shall be applied against the amounts then owed by that payee. PERS, in its discretion, may revise the repayment schedule or continue on the established schedule until the remaining amounts owed are fully repaid.

(5) The following list includes possible methods for PERS to recover an overpayment under an agreement with the payee. These methods are listed in order of preference. Unless otherwise ordered by the Board, PERS Staff is granted the discretion to select the method deemed most likely to effect a full recovery:

(a) A repayment of all amounts owed in a single payment.

(b) A deduction of a percentage or fixed dollar amount, to be agreed upon between the payee and PERS, from future monthly payments for a period not to exceed two years that will fully repay the amounts owed.

(d) A deduction of a percentage or fixed dollar amount from future monthly payments, to be agreed upon between the payee and PERS, for a specified period greater than two years that will fully repay the amounts owed if PERS deems that a longer repayment period is warranted by the payee’s personal financial circumstances.

(6) If the payee does not agree to one of the recovery methods under section (5) of this rule, PERS shall use one or more of the following methods to effect a full recovery of any overpayment or erroneous payment:

(a) Deducting not more than 10 percent from current and future monthly payments to a payee until the full amounts owed are recovered.

(b) Making an actuarially determined reduction, not to exceed 10 percent, to current and future payments from PERS calculated to repay the full amount of the overpayment or erroneous payment during the period in which monthly payments will be made to the payee.

(c) Seeking recovery of the overpayment or erroneous payment by using any remedy available to the Board under applicable law.

(d) Engaging the services of outside collection agencies.

(7) If a recovery method has to be selected under section (6) and the overpayment is caused solely by the actions of PERS or a participating public employer, PERS will select a method which imposes the least economic hardship on the member while allowing for a reasonably prudent recovery of the overpayment.

(8) The base or original benefit payment used to calculate cost-of-living adjustments, ad hoc increases, or other benefit increases shall not be altered by an actuarial reduction provided for in subsection (6)(b) of this rule.

(9) In the event that PERS determines that an overpayment or erroneous payment was not caused by PERS or by the actions of a participating public employer, PERS may include within the amounts owed by the payee:

(a) All costs incurred by PERS in recovering the overpayment or erroneous payment, including attorney fees, and fees assessed by an outside collection agency; and

(b) Interest in an amount equal to one percent per month on the balance of the overpayment or erroneous payment until that payment is fully recovered.

(10) The Board authorizes the Director, or the Director’s designee, to waive:

(a) The interest and costs of collection associated with the recovery of an overpayment or erroneous payment for good cause shown; and

(b) The recovery of any overpayment or erroneous payment if the total amount of overpayments or erroneous payments is less than $200.

(11) Recovery of an overpayment or erroneous payment shall not be effected if PERS has not initiated recovery of those payments within six years after the date the overpayment or erroneous payment was made. PERS initiates recovery on the date it mails the notification required by ORS 238.715(4).

History

Statutory/Other Authority: 238.715(9), 238.630 & 238.650
Statutes/Other Implemented: ORS 238.715
PERS 7-2026, minor correction filed 04/28/2026, effective 04/28/2026
PERS 15-2025, amend filed 12/05/2025, effective 12/05/2025
PERS 6-2015, f. & cert. ef. 5-29-15
PERS 10-2013, f. & cert. ef. 11-22-13
PERS 2-2006, f. & cert. ef. 2-1-06
PERS 14-1998, f. & cert. ef. 12-17-98

Or. Admin. R. 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.

History

Statutory/Other Authority: ORS 238.650 and 238A.450
Statutes/Other Implemented: ORS 238.601
PERS 4-2012, f. & cert. ef. 3-28-12

Or. Admin. R. 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 reasonable to conclude, after all reasonable efforts to collect the debt have been made, that one or more of the following is true:

(1) The debtor does not and will not for the foreseeable future own or have the right to own assets from which PERS could collect the debt.

(2) It is reasonably estimated that the cost of collecting the debt would equal or exceed the amount of the debt.

(3) The debtor is deceased, and there are no assets in the debtor’s estate from which PERS could collect the debt.

(4) The debtor is a corporation or a limited liability company that is not and for the foreseeable future will not be engaged in any income-producing activity, and there are no assets from which PERS could collect the debt.

(5) The debt has previously been discharged in bankruptcy.

(6) The debtor’s estate is subject to a pending bankruptcy proceeding in which it is reasonable to conclude that the debt will be discharged and that PERS will receive none or an insubstantial share of the assets of the bankruptcy estate.

(7) PERS is and will be for the foreseeable future unable to collect from the debtor or from anyone owing the debtor money or holding assets of or from the debtor.

(8) PERS is unable to locate the debtor despite having made reasonable efforts to do so.

(9) The debt has been liquidated by reduction to a court judgment, administrative order or distraint warrant, which has subsequently expired.

History

Statutory/Other Authority: ORS 238.650, 293.240 & 238A.450
Statutes/Other Implemented: ORS 293.240(2)
PERS 1-2012, f. & cert. ef. 2-1-12
PERS 9-2011(Temp), f. & cert. ef. 11-23-11 thru 5-20-12

Or. Admin. R. 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 maximum funding of $500,000 for the purpose of this rule.

(2) If PERS determines that there is a deficit of moneys available for the payment of retirement allowances due to contingencies other than those related to gains and losses of invested capital, and the amount of the deficit is $50,000 or lower, PERS staff is authorized to use moneys in the contingency reserve subaccount as established under this rule to prevent such a deficit as described in ORS 238.670(1).

(3) PERS staff is required to make a report to the Board no less than once a year to provide a full accounting of all the moneys spent under section (2) of this rule.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.650 & 238.670
PERS 7-2024, adopt filed 10/04/2024, effective 10/04/2024

Division 7 EARNINGS AND INTEREST DISTRIBUTION

Or. Admin. R. 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 rate” means the rates determined by the Board for crediting earnings to Tier One regular accounts, Tier Two regular accounts, IAP accounts, judge member regular accounts and member variable accounts, effective as of December 31 of each year.

(2) “Assumed rate” means the actuarial assumed rate of return on investments as adopted by the Board for the most recent actuarial valuation.

(3) “Average annualized rate” means the monthly rate provided by the Oregon State Treasury representing the rate credited to cash accounts.

(4) “Benefits-in-Force Reserve” or “BIF Reserve” means the reserve established under ORS 238.670(2).

(5) “Capital Preservation Reserve” means the reserve established under ORS 238.670(3).

(6) “Contingency Reserve” means the reserve established under ORS 238.670(1).

(7) “Date of distribution” is the date inscribed on the check, warrant, or electronic transfer issued to or on behalf of the member, the member’s beneficiary, or an alternate payee.

(8) “Date of payment” means the date a payment is received by PERS.

(9) “Earnings” means all income or losses to the Fund from investments and other sources, but does not include member or employer contributions.

(10) “Employee Pension Stability Account” and “EPSA” mean the account established in ORS 238A.353.

(11) “Member account” means the account established in ORS 238.250.

(12) “Retirement allocation fund” means the particular target date fund so designated by the Oregon State Treasury when it determines the investment allocation for all the target date funds.

(13) “Retirement installments fund” means the fund so designated by the Oregon State Treasury and is separate and apart from target date funds.

(14) “Target date fund” means a fund with an investment allocation that is aligned with the member’s birth year.

(15) “Tier One Member Rate Guarantee Reserve” and “Rate Guarantee Reserve” mean the reserve referenced in ORS 238.255(1) that enables the Board to credit earnings at or above the assumed rate under the conditions specified in 238.255.

(16) “Year-to-date calculation” means the rates used to credit a pro-rata distribution of year-to-date earnings, allowing for reserves and expenses, to Tier One regular accounts, Tier Two regular accounts, IAP accounts, judge member regular accounts or member variable accounts. These rates are calculated by staff on a monthly basis using the market value of investments in the Fund as supplied by the Oregon State Treasury. Year-to-date calculations for Tier One member regular accounts will be determined in accordance with OAR 459-007-0003.

History

Statutory/Other Authority: ORS 238.650 & 238A.450
Statutes/Other Implemented: ORS 238 & 238A
PERS 9-2020, amend filed 06/23/2020, effective 06/23/2020
PERS 9-2019, amend filed 12/06/2019, effective 12/06/2019
PERS 2-2018, amend filed 02/02/2018, effective 02/02/2018
PERS 7-2017, temporary amend filed 12/01/2017, effective 12/01/2017 through 05/29/2018
PERS 3-2009, f. & cert. ef. 4-6-09
PERS 1-2006, f. & cert. ef. 2-1-06
PERS 18-2005(Temp), f. & cert. ef. 10-26-05 thru 4-19-06
PERS 24-2003, f. & cert. ef. 12-15-03
PERS 4-2003(Temp), f. 6-13-03, cert. ef. 7-1-03 thru 12-26-03
PERS 6-1998, f. & cert. ef. 5-22-98, Renumbered from 459-007-0010
PERS 1-1996, f. & cert. ef. 3-26-96, Renumbered from 459-010-0135
PERS 1-1995, f. 9-12-95, cert. ef. 1-1-96
PER 1-1985, f. & cert. ef. 3-22-85
PER 2-1984(Temp), f. & cert. ef. 9-26-84
PER 1-1984(Temp), f. & cert. ef. 6-29-84
PER 4-1980(Temp), f. 11-26-80, cert. ef. 12-1-80
PER 8, f. 12-15-55

Or. Admin. 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 238.255 have been met.

(2) The provisions of this rule shall be applied retroactively to July 1, 2003.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238
PERS 1-2006, f. & cert. ef. 2-1-06
PERS 18-2005(Temp), f. & cert. ef. 10-26-05 thru 4-19-06
PERS 24-2003, f. & cert. ef. 12-15-03

Or. Admin. R. 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 in this division, earnings on all accounts and reserves in the Fund shall be credited as of December 31 of each calendar year in the manner specified in this rule.

(3) Health insurance accounts. All earnings attributable to the Standard Retiree Health Insurance Account (SRHIA), Retiree Health Insurance Premium Account (RHIPA) or Retirement Health Insurance Account (RHIA) shall be credited to the account from which they were derived, less administrative expenses incurred by each account, as provided in ORS 238.410, 238.415 and 238.420, respectively.

(4) Employer lump sum payments. All earnings or losses attributable to the employer lump sum payment accounts established under ORS 238.229 shall be credited to the accounts from which they were derived.

(5) Member variable accounts. Earnings on the Variable Annuity Account shall first be used to pay a pro rata share of administrative expenses in accordance with ORS 238.260(6). If the annual earnings from the Variable Annuity Account are insufficient to pay for the pro rata share of administrative expenses, those administrative expenses shall be paid from earnings on other accounts within the Public Employees Retirement Fund (PERF), if available. If earnings from those accounts within the PERF are insufficient to pay for the administrative expenses, those expenses shall be paid from employer accounts as required by ORS 238.610. All remaining earnings or losses attributable to the Variable Annuity Account shall be credited to the participants of that account, as provided under 238.260(6) and (7)(b).

(6) Individual Account Program accounts. Earnings on the Individual Account Program accounts established under ORS 238A.350 shall first be used to pay a pro rata share of administrative expenses in accordance with ORS 238A.350(1). Losses on Individual Account Program target date funds shall be increased by a pro rata share of administrative expenses. After administrative expenses, each Individual Account Program account established under ORS 238A.350 shall be credited with the earnings or losses of the specific target date fund to which the account is allocated, except for account balances allocated to the retirement installments fund, which shall be credited with earnings or losses on a monthly basis.

(7) Administrative expenses. Earnings attributable to Tier One regular accounts, the Tier One Rate Guarantee Reserve, Tier Two member regular accounts, judge member regular accounts, the OPSRP Pension Program reserve, Employee Pension Stability Accounts, employer contribution accounts, the Contingency Reserve, the Benefits-in-Force Reserve and the Capital Preservation Reserve shall first be used to pay the system’s remaining administrative expenses under ORS 238.610.

(8) Contingency Reserve.

(a) In any year in which total earnings on the Fund equal or exceed the assumed rate, an amount not exceeding seven and one-half percent of remaining earnings attributable to Tier One regular accounts, the Tier One Rate Guarantee Reserve, Tier Two regular accounts, judge member regular accounts, the OPSRP Pension Program reserve, Employee Pension Stability Accounts, the Benefits-in-Force Reserve, employer contribution accounts, the Capital Preservation Reserve and the Contingency Reserve shall be credited to the Contingency Reserve to the level at which the Board determines it is adequately funded for the purposes specified in ORS 238.670(1).

(b) The portion of the Contingency Reserve allowed under ORS 238.670(1)(a) for use in preventing a deficit in the fund due to employer insolvency may only be credited using earnings attributable to employer contribution accounts.

(9) Tier One Member Rate Guarantee Reserve. All remaining earnings attributable to Tier One regular accounts, the Tier One Member Rate Guarantee Reserve, judge member regular accounts, the Benefits-in-Force Reserve, and the Contingency Reserve may be credited to the Tier One Member Rate Guarantee Reserve established under ORS 238.255(1).

(10) Capital Preservation Reserve. Remaining earnings attributable to the Tier Two member regular accounts, judge member regular accounts, OPSRP Pension Program reserve, Employee Pension Stability Accounts, employer contribution accounts, the Benefits-in-Force Reserve, the Contingency Reserve and the Capital Preservation Reserve may be credited from those sources to one or more reserve accounts that may be established under ORS 238.670(3) to offset gains and losses of invested capital.

(11) Tier One regular accounts. All remaining earnings attributable to Tier One regular accounts and the Tier One Rate Guarantee Reserve shall be credited to Tier One member regular accounts at the assumed rate in any year in which the conditions set out in ORS 238.255 have not been met. Crediting under this subsection shall be funded first by all remaining earnings attributable to Tier One regular accounts and the Tier One Rate Guarantee Reserve, then moneys in the Tier One Rate Guarantee Reserve.

(12) Judge member regular accounts. All remaining earnings attributable to judge member regular accounts shall be credited to all active and inactive judge member regular accounts at the judge member rate. Crediting under this subsection shall be funded first by all remaining earnings attributable to the judge member regular accounts and the Tier One Rate Guarantee Reserve, then moneys in the Tier One Rate Guarantee Reserve.

(13) Tier Two member regular accounts. All remaining earnings or losses attributable to Tier Two member regular accounts shall be credited to all active and inactive Tier Two member regular accounts under ORS 238.250.

(14) Employee Pension Stability Account (EPSA). All remaining earnings or losses attributable to the EPSAs shall be credited to all active and inactive EPSAs under ORS 238A.353. For administrative expenses:

(a) EPSA accounts of Tier One and Tier Two members will be treated as Tier Two funds.

(b) EPSA accounts of OPSRP members will be treated as OPSRP Pension Program Reserve funds.

(15) OPSRP Pension Program Reserve. Remaining earnings attributable to the OPSRP Pension Program Reserve, the Contingency Reserve, and the Capital Preservation Reserve may be used to credit the OPSRP Pension Program reserve.

(16) Benefits-in-Force Reserve. Remaining earnings attributable to the Benefits-in-Force Reserve, the Contingency Reserve, the Capital Preservation Reserve and employer contribution accounts, in that order, shall be used, to the extent available, to credit the Benefits-in-Force Reserve with earnings for that calendar year in accordance with ORS 238.670(2).

(17) Employer contribution accounts. All remaining earnings attributable to employer contribution accounts shall be credited to employer contribution accounts.

(18) Remaining earnings. Any remaining earnings shall be credited to accounts and reserves in the Fund at the Board’s discretion.

History

Statutory/Other Authority: ORS 238.650 & 238A.450
Statutes/Other Implemented: ORS 238 & 238A.350
PERS 1-2022, amend filed 01/31/2022, effective 01/31/2022
PERS 9-2020, amend filed 06/23/2020, effective 06/23/2020
PERS 9-2019, amend filed 12/06/2019, effective 12/06/2019
PERS 2-2018, amend filed 02/02/2018, effective 02/02/2018
PERS 7-2017, temporary amend filed 12/01/2017, effective 12/01/2017 through 05/29/2018
PERS 9-2012, f. & cert. ef. 5-24-12
PERS 4-2009, f. & cert. ef. 4-6-09
PERS 1-2006, f. & cert. ef. 2-1-06
PERS 18-2005(Temp), f. & cert. ef. 10-26-05 thru 4-19-06
PERS 8-2004, f. & cert. ef. 4-15-04

Or. Admin. R. 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 the first of the year following the Board’s adoption of the change.

(3) The assumed rate is set at 6.9 percent, effective on January 1, 2026.

History

Statutory/Other Authority: ORS 238.650 & 238A.450
Statutes/Other Implemented: ORS 238.255
PERS 9-2025, amend filed 09/26/2025, effective 09/26/2025
PERS 12-2023, amend filed 09/29/2023, effective 09/29/2023
PERS 7-2021, amend filed 10/01/2021, effective 10/01/2021
PERS 7-2019, amend filed 09/25/2019, effective 09/25/2019
PERS 4-2017, f. & cert. ef. 7-28-17
PERS 11-2015, f. & cert. ef. 9-25-15
PERS 9-2013, f. & cert. ef. 9-27-13

Or. Admin. R. 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 Accounting and Standards Board (GASB) standards.

(2) Prior to earnings crediting each year, PERS shall compile the actuarial, auditing, and internal staff costs of providing the audited financial data it will provide to employers. Earnings on employer contribution accounts shall be reduced by the amount of those costs.

History

Statutory/Other Authority: ORS 238.650 & 238A.450
Statutes/Other Implemented: ORS 238.610(1)(b)
PERS 3-2015, f. & cert. ef. 1-30-15
PERS 16-2014(Temp), f. & cert. ef. 11-21-14 thru 5-19-15
PERS 9-2014, f. & cert. ef. 7-25-14

Or. Admin. R. 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 by PERS of the underpaid amount based on:

(1) The rate credited to the respective tier in the Fund for the prior calendar year for members who have effective dates of retirement before January 1, 2006;

(2) The average annualized interest rate, as defined in OAR 459-007-0001(3), in effect as of the date of distribution for members who have effective dates of retirement on and after January 1, 2006.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.455
PERS 3-2009, f. & cert. ef. 4-6-09
PERS 22-2005, f. & cert. ef. 12-7-05
PERS 6-1998, f. & cert. ef. 5-22-98

Or. Admin. R. 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.

History

Statutory/Other Authority: ORS 238.650 & 238A
Statutes/Other Implemented: ORS 238 & 238A
PERS 3-2009, f. & cert. ef. 4-6-09
PERS 6-1998, f. & cert. ef. 5-22-98
PERS 1-1996, f. & cert. ef. 3-26-96, Renumbered from 459-010-0135
PERS 1-1995, f. 9-12-95, cert. ef. 1-1-96
PER 1-1985, f. & cert. ef. 3-22-85
PER 2-1984(Temp), f. & cert. ef. 9-26-84
PER 1-1984(Temp), f. & cert. ef. 6-29-84
PER 4-1980(Temp), f. 11-26-80, cert. ef. 12-1-80
PER 8-1955, f. 12-15-55

Or. Admin. R. 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

(b) Member lump sum payments include, but are not limited to:

(A) Retirement credit purchases.

(B) Voluntary redeposits, as provided under ORS 238.105.

(2) No earnings may be credited to a member lump sum payment that:

(a) Is paid within 90 days before of after the member’s effective retirement date; or

(b) May be paid only within 90 days before or after the member’s effective retirement date.

(3) Earnings from the date of payment to December 31 of the calendar year of the date of payment or the member’s effective retirement date, whichever occurs first, must be credited to the member’s lump sum payment based on the rate derived from the formula:

(Y - X)(R/T) + (Z - Y), where:

R = The number of days from the date of payment through the last day of the month the payment is received;

T = The total number of days in the month the payment is received;

X = The year-to-date calculation applicable to the member’s regular account as of the first of the month of the date of payment;

Y = The year-to-date calculation as of the first of the month following the date of payment; and

Z = The year-to-date calculation as of the member’s effective retirement date if such date occurs during the calendar year the payment is received, or, in all other cases, the annual rate applicable to the member’s regular account as of December 31 of the year the payment is received.

Example: A member lump sum payment is received by PERS on May 12, 2002, from a Tier One member whose effective retirement date is August 1, 2003. The Tier One regular account year-to-date calculation as of May 1, 2002, is 1.0263, the Tier One year-to-date calculation as of June 1, 2002, is 1.0330, and the Tier One regular account annual rate for 2002 is 1.0800. Therefore, R = 20, T = 31, X = 1.0263, Y = 1.0330, Z = 1.0800 and the earnings crediting rate is:

(1.0330 - 1.0263)(20/31) + (1.0800 – 1.0330)

= (0.0067)(0.6452) + .0470

= 0.0043 + .0470

= 0.0513

(4) If the member’s effective retirement date does not occur in the same calendar year as the date of payment, and the payment is not subject to the provisions of section (2) of this rule, the member lump sum payment must be made a part of the member’s regular account as of January 1 of the year following the date of payment.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238
PERS 3-2009, f. & cert. ef. 4-6-09
PERS 1-2007, f. & cert. ef. 1-23-07
PERS 13-2003, f. & cert. ef. 11-14-03
PERS 4-2003(Temp), f. 6-13-03, cert. ef. 7-1-03 thru 12-26-03
PERS 9-2000, f. 12-15-00 cert. ef. 1-1-01

Or. Admin. R. 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 specified in this rule.

(1) Earnings on the member’s regular account shall be credited as follows:

(a) If earnings for the calendar year prior to the effective date of withdrawal have not yet been credited, earnings for that year shall be credited to the member’s regular account based on the latest year-to-date calculation available for that year.

(b) Earnings from January 1 of the calendar year of the effective date of withdrawal to the effective date of withdrawal shall be credited to the member’s regular account based on the latest year-to-date calculation as of the effective date of withdrawal.

(2) If the member is participating in the Variable Annuity Account, earnings or losses of the Variable Annuity Account shall be credited as follows:

(a) If earnings or losses for the calendar year prior to the effective date of withdrawal have not yet been credited, earnings or losses for that year shall be credited to the member’s variable account based on the latest year-to-date calculation available for that year.

(b) Earnings or losses from January 1 of the calendar year of the effective date of withdrawal to the effective date of withdrawal shall be credited to the member’s variable account based on the latest year-to-date calculation as of the first of the month of the effective date of withdrawal.

(3) After earnings and losses have been credited in accordance with sections (1) and (2) of this rule, the value of the variable account shall be added to the value of the regular account and the sum shall constitute the withdrawal amount.

(4) Earnings on the withdrawal amount from the effective date of withdrawal to the date of distribution shall be paid to the member based on the average annualized rate prorated for that period.

(5) The provisions of this rule are effective on July 1, 2003.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.265
PERS 24-2003, f. & cert. ef. 12-15-03
PERS 4-2003(Temp), f. 6-13-03, cert. ef. 7-1-03 thru 12-26-03
PERS 1-2000, f. & cert. ef. 1-7-00
PERS 9-1998, f. 5-22-98, cert. ef. 1-1-00
PERS 1-1996, f. & cert. ef. 3-26-96, Renumbered from 459-010-0135(5)
PERS 1-1995, f. 9-12-95, cert. ef. 1-1-96
PER 1-1985, f. & cert. ef. 3-22-85
PER 2-1984(Temp), f. & cert. ef. 9-26-84
PER 1-1984(Temp), f. & cert. ef. 6-29-84
PER 4-1980(Temp), f. 11-26-80, cert. ef. 12-1-80
PER 8, f. 12-15-55

Or. Admin. R. 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 this rule:

(a) “Death benefit amount” means the sum of the member’s regular account and variable account as of the first of the month of the member’s death and held by PERS for the beneficiary or beneficiaries of a deceased member until benefits are distributed.

(b) “Effective date of request” means the first of the month in which PERS receives a valid request for distribution of the death benefit amount.

(2) For a member whose date of death is on or after January 1, 2000:

(a) If the member’s death is before July 1, 2003, earnings shall be credited to the member’s regular account as follows:

(A) If earnings for the calendar year before the date of the member’s death have not yet been credited, earnings for that year shall be credited based on the greater of the assumed rate or the latest year-to-date calculation available for that year.

(B) Earnings for the calendar year of the member’s death shall be credited based on the greater of the assumed rate, prorated from January 1 to the first of the month of the member’s death, or the latest year-to-date calculation as of the first of the month of the member’s death.

(b) If the member’s death is on or after July 1, 2003, earnings shall be credited to the member’s regular account as follows:

(A) If earnings for the calendar year before the date of the member’s death have not yet been credited, earnings for that year shall be credited based on the latest year-to-date calculation available for that year.

(B) Earnings for the calendar year of the member’s death shall be credited based on the latest year-to-date calculation as of the first of the month of the member’s death.

(c) If the member was participating in the Variable Annuity Account, earnings shall be credited to the member’s variable account as follows:

(A) If earnings for the calendar year before the calendar year of the member’s death have not yet been credited, earnings for that year shall be credited based on the latest year-to-date calculation available for that year.

(B) Earnings for the calendar year of the member’s death shall be credited based on the latest year-to-date calculation as of the first of the month of the member’s death.

(d) After earnings have been credited in accordance with subsections (a), (b) and (c), the value of the member’s variable account shall be added to the value of the member’s regular account and the sum shall constitute the death benefit amount as of the first of the month of the member’s death.

(e) If the effective date of request occurs within the same year as the date of death, earnings from the first of the month of the member’s death to the effective date of request shall be credited based on the latest year-to-date calculation for Tier Two regular accounts as of the effective date of request less the latest year-to-date calculation for Tier Two regular accounts as of the first of the month of the member’s death, and subsections (f) through (h) of this section do not apply.

(f) Earnings on the death benefit amount from the first of the month of the member’s death to the end of the calendar year shall be credited based on the Tier Two annual rate less the latest year-to-date calculation for Tier Two as of the first of the month of the member’s death.

(g) Earnings on the death benefit amount for calendar years following the year of the member’s death and before the year funds are requested shall be credited in accordance with OAR 459-007-0005 for Tier Two regular accounts.

(h) Earnings on the death benefit amount from January 1 of the year funds are requested to the effective date of request shall be based on the latest year-to-date calculation for Tier Two regular accounts.

(i) Earnings from the effective date of request to the date of distribution shall be based on the average annualized rate.

(3) If a member’s date of death is before July 1, 2003, and the effective date of request is before December 31, 2004, earnings shall be credited as follows:

(a) Earnings from the date of death through December 31, 1999, shall be credited to the member’s regular account as of December 31, 1999, in accordance with the provisions of this rule in effect from the date of death through December 31, 1999.

(b) Earnings from January 1, 2000, to the date of distribution shall be credited in accordance with ORS 238.390 as simple interest prorated for that period based on the assumed rate.

(4) If a member’s date of death is before January 1, 2000, but the effective date of request is on or after December 31, 2004, earnings shall be credited as follows:

(a) Earnings shall be credited in accordance with the version(s) of OAR 459-007-0050 in effect up to January 1, 2000.

(b) As of January 1, 2000, the deceased member’s account(s) shall be converted to a death benefit amount under subsection (2)(d) of this rule.

(c) Earnings on the death benefit amount from January 1, 2000, to the date of distribution shall be credited in accordance with subsections (2)(e) through (2)(h) of this rule.

(5) If a beneficiary elects a monthly payment, earnings shall be credited to the death benefit amount from the first of the month of the member’s date of death to the effective date of the monthly payment, which is the first of the month following the member’s date of death, as follows:

(a) Subtract the latest Tier Two regular account year-to-date calculation available as of the first of the month of the member’s death, from the latest Tier Two regular account year-to-date calculation available as of the effective date of the monthly payment.

(b) Multiply the beneficiary’s death benefit amount as of the first of the month of the member’s death by the rate calculated in subsection (a) of this section.

(6) The provisions of this rule are effective on July 1, 2003.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.390, 238.430 & 238.435
PERS 3-2009, f. & cert. ef. 4-6-09
PERS 21-2005, f. & cert. ef. 11-1-05
PERS 16-2004, f. & cert. ef. 6-15-04
PERS 24-2003, f. & cert. ef. 12-15-03
PERS 4-2003(Temp), f. 6-13-03, cert. ef. 7-1-03 thru 12-26-03
PERS 1-2000, f. & cert. ef. 1-7-00
PERS 9-1998, f. 5-22-98, cert. ef. 1-1-00
PERS 1-1996, f. & cert. ef. 3-26-96, Renumbered from 459-010-0135
PERS 1-1995, f. 9-12-95, cert. ef. 1-1-96
PER 1-1985, f. & cert. ef. 3-22-85
PER 2-1984(Temp), f. & cert. ef. 9-26-84
PER 1-1984(Temp), f. & cert. ef. 6-29-84
PER 4-1980(Temp), f. 11-26-80, cert. ef. 12-1-80
PER 8-1955, f. 12-15-55

Or. Admin. R. 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 459-007-0050(1), as of the first of the month of the member’s death.

(2) Earnings shall thereafter be credited to the employer death benefit amount in accordance with OAR 459-007-0050(2)(e) through (i).

(3) If a beneficiary elects to receive a monthly benefit, earnings are credited in accordance with OAR 459-007-0050(5).

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.390 & 238.395
PERS 3-2009, f. & cert. ef. 4-6-09
PERS 21-2005, f. & cert. ef. 11-1-05
PERS 24-2003, f. & cert. ef. 12-15-03
PERS 4-2003(Temp), f. 6-13-03, cert. ef. 7-1-03 thru 12-26-03
PERS 1-2000, f. & cert. ef. 1-7-00
PERS 9-1998, f. 5-22-98, cert. ef. 1-1-00
PERS 1-1996, f. & cert. ef. 3-26-96, Renumbered from 459-010-0135
PERS 1-1995, f. 9-12-95, cert. ef. 1-1-96
PER 1-1985, f. & cert. ef. 3-22-85
PER 2-1984(Temp), f. & cert. ef. 9-26-84
PER 1-1984(Temp), f. & cert. ef. 6-29-84
PER 4-1980(Temp), f. 11-26-80, cert. ef. 12-1-80
PER 8-1955, f. 12-15-55

Or. Admin. R. 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 account in the manner specified in this rule.

(1) Earnings shall be credited to the member’s regular account as follows:

(a) If earnings for the prior calendar year have not yet been credited, earnings shall be credited for that year based on the latest year-to-date calculation available for that year.

(b) Earnings for the calendar year of the effective retirement date shall be credited based on the latest year-to-date calculation as of the effective retirement date.

(2) If the member is participating in the Variable Annuity Account at time of retirement, earnings or losses shall be credited to the member's variable account as follows:

(a) If earnings or losses for the calendar year prior to the effective retirement date have not yet been credited, earnings or losses for that year shall be credited based on the latest year-to-date calculation available for that year.

(b) Earnings or losses for the calendar year of the effective retirement date shall be credited based on the latest year-to-date calculation as of the effective retirement date.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.260, 238.300, 238.305 & 238.315
PERS 20-2003, f. 12-15-03 cert. ef. 4-1-04
PERS 9-1998, f. 5-22-98, cert. ef. 1-1-2000
PERS 1-1996, f. & cert. ef. 3-26-96, Renumbered from 459-010-0135
PERS 1-1995, f. 9-12-95, cert. ef. 1-1-96
PER 1-1985, f. & cert. ef. 3-22-85
PER 2-1984(Temp), f. & cert. ef. 9-26-84
PER 1-1984(Temp), f. & cert. ef. 6-29-84
PER 4-1980(Temp), f. 11-26-80, cert. ef. 12-1-80
PER 8-1955, f. 12-15-55

Or. Admin. R. 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 238.315, earnings from the effective date of the last annual rate to the date of distribution shall be credited in the manner specified in this rule.

(1) Earnings on the member’s regular account shall be credited as follows:

(a) If earnings for the calendar year before the effective retirement date have not yet been credited, earnings for that year shall be credited to the member’s regular account based on the latest year-to-date calculation available for that year.

(b) Earnings credited for the calendar year of the effective retirement date shall be credited to the member’s regular account based on the latest year-to-date calculation as of the effective retirement date.

(2) If the member is participating in the Variable Annuity Account at retirement, earnings shall be credited as follows:

(a) If earnings for the calendar year before the effective retirement date have not yet been credited, earnings for that year shall be credited to the member’s variable account based on the latest year-to-date calculation available for that year.

(b) Earnings from January 1 of the year of the effective retirement date to the effective retirement date shall be credited to the member’s variable account based on the latest year-to-date calculation as of the effective retirement date.

(3) Earnings on the combined amount of the accounts credited under sections (1) and (2) of this rule from the effective retirement date to the date of distribution shall be paid to the member based on the average annualized rate prorated for that period.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.260, 238.300, 238.305 & 238.315
PERS 3-2009, f. & cert. ef. 4-6-09
PERS 20-2003, f. 12-15-03, cert. ef. 4-1-04
PERS 1-2000, f. & cert. ef. 1-7-00
PERS 9-1998, f. 5-22-98, cert. ef. 1-1-00
PERS 1-1996, f. & cert. ef. 3-26-96, Renumbered from 459-010-0135
PERS 1-1995, f. 9-12-95, cert. ef. 1-1-96
PER 1-1985, f. & cert. ef. 3-22-85
PER 2-1984(Temp), f. & cert. ef. 9-26-84
PER 1-1984(Temp), f. & cert. ef. 6-29-84
PER 4-1980(Temp), f. 11-26-80, cert. ef. 12-1-80
PER 8, f. 12-15-55

Or. Admin. R. 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 the last annual rate to the date of distribution of the final installment payment in the manner specified in this rule.

(1) Regular account. Earnings shall be credited to the member’s regular account as follows:

(a) Prior year earnings. If earnings for the calendar year before the effective retirement date have not yet been credited, earnings shall be credited for that year based on the latest year-to-date calculation available for that year.

(b) Retirement year earnings. Earnings for the calendar year of the effective retirement date shall be based on the latest year-to-date calculation as of the effective retirement date.

(2) Variable account. If the member is participating in the Variable Annuity Account, earnings or losses shall be applied to the member’s variable account as follows:

(a) Prior year earnings. If earnings or losses for the calendar year before the effective retirement date have not yet been credited to the member’s variable account, earnings or losses for that year shall be credited based on the latest year-to-date calculation available for that year.

(b) Retirement year earnings. Earnings or losses for the calendar year of the effective retirement date shall be credited based on the latest year-to-date calculation as of the effective retirement date.

(c) In accordance with ORS 238.305(4)(a)(F), after crediting earnings or losses as provided in subsections (a) and (b) of this section, and before the distribution of the first installment, the adjusted balance of the member’s variable account shall be transferred to the member’s regular account as of the effective retirement date.

(3) Initial installment. Earnings shall be credited to the initial installment as follows:

(a) If the initial installment is distributed in the same year as the effective retirement date, earnings shall be paid with the initial installment based on the average annualized rate prorated from the effective retirement date to the date of distribution of the initial installment.

(b) If the initial installment is distributed in the year following the effective retirement date, earnings shall be paid with the initial installment based on the average annualized rate prorated from January 1 of the year following the effective retirement date to the date of distribution of the initial installment.

(4) Annual earnings — initial year. Earnings from the effective retirement date to December 31 of the year of retirement shall be credited to the member’s regular account in the following amount:

(a) The member’s regular account balance as of December 31 of the year of retirement, excluding the remaining earnings credited to the member’s regular account under subsection (1)(b) of this rule and to the member’s variable account under subsection (2)(b) of this rule; multiplied by

(b) The annual rate for that year less the latest year-to-date calculation as of the effective retirement date.

(5) Annual earnings — subsequent years. Earnings shall be credited to the member’s regular account as of December 31 of each calendar year subsequent to the effective retirement date in the manner specified in this section.

(a) Earnings from January 1 to the date of distribution of the annual installment shall be credited in the following amount:

(A) The member’s regular account balance as of the date of distribution of the annual installment; multiplied by

(B) The latest year-to-date calculation as of the date of distribution.

(b) Earnings from the date of distribution of the annual installment to December 31 shall be credited in the following amount:

(A) The member’s regular account balance as of December 31; multiplied by

(B) The latest year-to-date calculation as of the date of distribution.

(6) Final installment. The final installment shall include the remaining balance of the member’s regular account as of the date of distribution of the final installment, plus earnings credited as follows:

(a) If earnings for the calendar year before the year of the final installment have not yet been credited to the member’s regular account, earnings shall be credited based on the latest year-to-date calculation available for that year.

(b) Earnings for the calendar year of the final installment shall be credited based on the latest year-to-date calculation as of the date of distribution of the final installment.

(7) The provisions of this rule shall be applied retroactively to April 1, 2004.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.260, 238.300 & 238.305
PERS 5-2012, f. & cert. ef. 3-28-12
PERS 1-2006, f. & cert. ef. 2-1-06
PERS 18-2005(Temp), f. & cert. ef. 10-26-05 thru 4-19-06
PERS 20-2003, f. 12-15-03, cert. ef. 4-1-04
PERS 1-2000, f. & cert. ef. 1-7-00
PERS 9-1998, f. 5-22-98, cert. ef. 1-1-00
PERS 1-1996, f. & cert. ef. 3-26-96, Renumbered from 459-010-0135
PERS 1-1995, f. 9-12-95, cert. ef. 1-1-96
PER 1-1985, f. & cert. ef. 3-22-85
PER 2-1984(Temp), f. & cert. ef. 9-26-84
PER 1-1984(Temp), f. & cert. ef. 6-29-84
PER 4-1980(Temp), f. 11-26-80, cert. ef. 12-1-80
PER 8, f. 12-15-55

Or. Admin. R. 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 the member account in the manner specified in this rule.

(1) Earnings on the former member’s regular account shall be credited as follows:

(a) If earnings for the calendar year before the date of loss of membership have not yet been credited, earnings shall be credited for that year based on the Tier One latest year-to-date calculation available for that year.

(b) Earnings for the calendar year of loss of membership shall be credited based on the Tier One latest year-to-date calculation as of the first of the month following the date of loss of membership.

(2) If the former member is participating in the Variable Annuity Account, earnings on the Variable Annuity Account shall be credited to the former member’s variable account as follows:

(a) If earnings for the calendar year before the date of loss of membership have not yet been credited, earnings for that year shall be credited based on the Tier One latest year-to-date calculation available for that year.

(b) Earnings for the calendar year of loss of membership shall be credited as of the end of the calendar month of loss of membership based on the Tier One latest year-to-date calculation as of the first of the month following the date of loss of membership

(3) Except as provided in OAR 459-007-0160, no earnings shall be credited for any period following the calendar month of loss of membership.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.095 & 238.435
PERS 3-2009, f. & cert. ef. 4-6-09
PERS 12-2007, f. & cert. ef. 11-23-07
PERS 13-2003, f. & cert. ef. 11-14-03
PERS 4-2003(Temp), f. 6-13-03, cert. ef. 7-1-03 thru 12-26-03
PERS 9-1998, f. 5-22-98, cert. ef. 1-1-2000

Or. Admin. R. 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, earnings or losses during dates of active membership will be credited to the Loss of Membership account in the manner specified in this rule.

(1) Partial year crediting.

(a) If active membership begins after the first of the year and continues through the end of the calendar year, earnings or losses from the date of active membership to December 31 of that calendar year shall be credited to the Loss of Membership account based on the Tier Two rate for the calendar year less the latest year to date Tier Two rate on the date of active membership.

(b) If the member is active on January 1 of the calendar year and active membership ends before December 31 of that calendar year, earnings or losses shall be credited to the Loss of Membership account based on the latest year to date Tier Two rate available as of the first of the month in which active membership ends.

(c) If active membership begins after the first of the year and ends before December 31 of that calendar year, earnings or losses shall be credited to the Loss of Membership account based on the latest year to date Tier Two rate available as of the first of the month in which active membership ends less the latest year to date Tier Two rate available on the date of active membership.

(2) Full year crediting. Earnings or losses for full calendar years of active membership will be credited based on the Tier Two rate for the year.

(3) The effective date of this rule is July 17, 2007. No earnings or losses will be credited to a Loss of Membership account for periods of active membership before July 17, 2007.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.095, 238.435 & OL 2007 Ch. 776
PERS 12-2007, f. & cert. ef. 11-23-07

Or. Admin. R. 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 the manner specified in this rule.

(1) Earnings or losses on the member’s regular account shall be credited as follows:

(a) If earnings or losses for the calendar year prior to the effective date of withdrawal have not been credited, earnings or losses for that year shall be credited to the member’s regular account based on the latest year-to-date calculation for that year.

(b) Earnings or losses from January 1 of the calendar year of the effective date of withdrawal to the effective date of withdrawal shall be credited to the member’s regular account based on the latest year-to-date calculation as of the effective date of withdrawal.

(2) If the member is participating in the Variable Annuity Account, earnings or losses of the Variable Annuity Account shall be credited as follows:

(a) If earnings or losses for the calendar year prior to the effective date of withdrawal have not been credited, earnings or losses for that year shall be applied based on the latest year-to-date calculation for that year.

(4) Earnings on the withdrawal amount from the effective date of withdrawal to the date of distribution shall be paid to the member based on the average annualized rate prorated for that period.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.265, 238.430 & 238.435
PERS 26-2004, f. 11-23-04, cert. ef. 3-15-05
PERS 1-2000, f. & cert. ef. 1-7-00
PERS 7-1998, f. & cert. ef. 5-22-98

Or. Admin. R. 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 this rule:

(b) “Effective date of request” means the first of the month in which PERS receives a valid request for distribution of the death benefit amount.

(2) For members whose date of death is on or after January 1, 2000, earnings shall be credited to the member’s regular account as follows:

(a) If earnings for the calendar year before the date of the member’s death have not yet been credited, earnings shall be applied for that year based on the latest year-to-date calculation for that year.

(b) Earnings for the calendar year of the member’s death shall be credited based on the latest year-to-date calculation for that year as of the first of the month of the member’s death.

(3) If the member was participating in the Variable Annuity Account, earnings shall be credited to the member’s variable account as follows:

(a) If earnings for the calendar year before the member’s death have not been credited, earnings for that year shall be based on the latest year-to-date calculation available for that year.

(b) Earnings for the calendar year of the member’s death shall be applied based on the latest year-to-date calculation for that year as of the first of the month of the member’s death.

(4) After earnings have been credited in accordance with sections (2) and (3) of this rule, the value of the member’s variable account shall be added to the value of the member’s regular account and the sum shall constitute the death benefit amount as of the first of the month of the member’s death.

(5) Earnings on the death benefit amount from the first of the month of the member’s death to the end of that calendar year shall be credited based on the Tier Two annual rate less the Tier Two latest year-to-date-calculation as of the first of the month of the member’s death.

(6) Earnings on the death benefit amount for calendar years following the year of the member’s death and before the year funds are requested shall be credited in accordance with OAR 459-007-0005 for Tier Two regular accounts.

(7) Earnings on the death benefit amount from January 1 of the year funds are requested to the effective date of request shall be based on the Tier Two latest year-to-date calculation.

(8) Earnings from the effective date of request to the date of distribution shall be based on the average annualized rate prorated for that period.

(9) If the member’s date of death is before January 1, 2000, earnings shall be credited in accordance with the rules applicable to Tier Two members in effect up to January 1, 2000. As of January 1, 2000, the deceased member’s account shall be converted to a death benefit amount. Earnings on the death benefit amount from January 1, 2000 to the date of distribution shall be credited in accordance with sections (5) through (8) of this rule.

(10) If a beneficiary elects a monthly payment, earnings shall be credited to the death benefit amount from the first of the month of the member’s date of death to the effective date of the monthly payment, which is the first of the month following the member’s date of death, as follows:

(a) Subtract the latest Tier Two regular account year-to-date calculation available as of the first of the month of the member’s death from the latest Tier Two regular account year-to-date calculation available as of the effective date of the monthly payment.

(b) Multiply the beneficiary’s death benefit amount by the Tier Two rate calculated in subsection (a) of this rule.

(11) The provisions of this rule apply to requests for distribution received on or after March 15, 2005.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.390, 238.430 & 238.435
PERS 3-2009, f. & cert. ef. 4-6-09
PERS 26-2004, f. 11-23-04, cert. ef. 3-15-05
PERS 7-1998, f. & cert. ef. 5-22-98

Or. Admin. R. 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 459-007-0230(1), as of the first of the month of the member’s death.

(2) Earnings shall thereafter be credited to the employer death benefit amount in accordance with OAR 459-007-0230(5) to (8).

(3) If a beneficiary elects to receive a monthly benefit, earnings are credited in accordance with OAR 459-007-0230(10).

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.390, 238.395, 238.430 & 238.435
PERS 3-2009, f. & cert. ef. 4-6-09
PERS 26-2004, f. 11-23-04, cert. ef. 3-15-05
PERS 7-1998, f. & cert. ef. 5-22-98

Or. Admin. R. 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 manner specified in this rule.

(1) Earnings shall be credited to the member’s regular account as follows:

(a) If earnings for the prior calendar year have not yet been credited, earnings for that year shall be credited based on the Tier Two latest year-to-date calculation for that year.

(b) Earnings for the calendar year of the effective retirement date shall be credited based on the Tier Two latest year-to-date calculation for that year.

(2) If the member is participating in the Variable Annuity Account at retirement, earnings shall be credited to the member’s variable account as follows:

(a) If earnings for the calendar year before the effective retirement date have not yet been credited, earnings for that year shall be credited based on the Tier Two latest year-to-date calculation for that year.

(b) Earnings for the calendar year of the effective retirement date shall be credited based on the Tier Two latest year-to-date calculation as of the effective retirement date.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.260, 238.300, 238.305 & 238.315
PERS 3-2009, f. & cert. ef. 4-6-09
PERS 26-2004, f. 11-23-04, cert. ef. 3-15-05
PERS 7-1998, f. & cert. ef. 5-22-98

Or. Admin. R. 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 annual rate to the date of distribution shall be credited in the manner specified in this rule.

(1) Earnings or losses on the member’s regular account shall be credited as follows:

(a) If earnings or losses for the calendar year prior to the effective retirement date have not yet been credited, earnings or losses shall be credited to the member’s regular account based on the latest year-to-date calculation for that year.

(b) Earnings or losses credited for the calendar year of the effective retirement date shall be applied based on the latest year-to-date calculation as of the effective retirement date for that year.

(2) If the member is participating in the Variable Annuity Account at time of retirement, earnings or losses shall be credited to the member's variable account as follows:

(a) If earnings or losses for the calendar year prior to the effective retirement date have not been applied to the member's variable account as of December 31 of that year, earnings or losses for that year shall be applied based on the latest year-to-date calculation for that year.

(b) Earnings or losses for the calendar year of the effective date of retirement shall be applied based on the latest year-to-date calculation as of the effective date of retirement for that year.

(3) Upon applying the earnings or losses as provided in section (2) of this rule, the balance of the member's variable account shall be transferred to the member's regular account as of the effective date of retirement.

(4) Earnings from the effective date of retirement to the date of distribution shall be credited based on the average annualized rate prorated for that period.

History

Statutory/Other Authority: ORS 238.650
Statutes/Other Implemented: ORS 238.260, 238.300, 238.305 & 238.315
PERS 26-2004, f. 11-23-04, cert. ef. 3-15-05
PERS 1-2000, f. & cert. ef. 1-7-00
PERS 7-1998, f. & cert. ef. 5-22-98

Or. Admin. R. 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 of the last annual rate to the date of distribution of the final installment payment in the manner specified in this rule.