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| Recently Adopted Rules |
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Reemployment of Retired Members of OPSRP and Receipt of Payments by a Reemployed Member of IAP
OAR 459-075-0300
The reemployment limitations of the OPSRP Pension Program are considerably more restrictive than those of the PERS Tier One/Tier Two Program. ORS 238A.245 states that a member who retires and is then employed in a qualifying position must stop receiving pension payments and return to active membership. A retired member employed in a non-qualifying position may continue to receive payments. If that retired member starts in a non-qualifying position but then works 600 or more hours in a calendar year, by law that becomes a qualifying position and the rule sets out those consequences. Also, a retired member may receive a lump sum benefit in lieu of a small pension (cash out). The new rule clarifies the application of the statutory provisions and provides additional guidance to ensure continued compliance with federal tax law.
OAR 459-080-0300
There are no specific statutory provisions in ORS Chapter 238A on reemployment of IAP members receiving benefit payments. Note that, upon retirement, an IAP member can elect to receive their distribution in a lump sum or installments. This rule explains the limitations on IAP members who retire and then return to PERS-covered employment. These limits are based on federal tax law standards on distributing benefits only after a separation or bona fide retirement.
Recovery of Administrative Costs
This OAR addressed recovering administrative costs only for service retirement estimate requests. Generally, a member can receive two free estimates each calendar year, and must pay $60 for each additional estimate. The rule changes specifically address disability retirement estimates, waiving any fees for requesting those estimates but specifying that a disability application must be on file at PERS to request a disability estimate.
The changes clarify the rule’s application to members who have submitted a disability retirement application and help streamline the workflow process between the Account Reconciliation Team and Disability Unit. These changes also help to limit the number of disability retirement estimate requests to only those members who have applied for benefits and make others who are “forum shopping” take the initiative to apply.
Vesting in OPSRP Pension Program and in an IAP Employer Account
A member must be vested in the OPSRP Pension Program and in the account(s) of the Individual Account Program (IAP) to receive benefits under those programs. ORS 238A.115 and 238A.320 provide a common standard by which a member vests in the pension program and in the IAP Employer Account, if one is provided: by completing 600 hours of service in each of five calendar years. The new rules clarify the application of this standard for each program.
OAR 459-075-0060, Vesting in the OPSRP Pension Program, clarifies that the determination of hours of service within a calendar year will include hours served during the member’s waiting time and hours served by the member with all PERS employers during a calendar year. For calendar years 2004 and later, hours of service will be determined based on hours reported by employers (Once the electronic reporting system, EDX, was implemented, employers started reporting hours worked). The rule also incorporates statutory restrictions on hours that may be considered.
OAR 459-080-0060, Vesting in an IAP Employer Account, similarly clarifies the hours of service to be included in the vesting determination. It also clarifies that hours of service performed before an employer account is established are included in the determination. A member who has performed 600 hours of service in each of five calendar years before the employer account is established will vest in the employer account on the date it is established. ORS 238A.320 does not limit hours of service to hours served after the establishment of an IAP employer account.
Actuarial Equivalency Factors
The modifications to OAR 459-005-0055 align the approval and implementation dates for actuarial equivalency factors (AEFs) with PERS Board practice. Starting with the 2006 valuation, the PERS Board shifted the timing of the Experience Study, which is the basis for the new AEF tables, from odd numbered years to even numbered years so the odd-year valuations used to set rates can be conducted in a more timely manner. This allows PERS to provide new rates to employers several months earlier. Because the AEFs are based on the Experience Study, this rule needed to be changed to conform to the shift in the timing of the Experience Study. This rule change conforms to the actuary’s new schedule by having future AEFs become effective as of January 1 of the subsequent even numbered year.
This rulemaking also repeals the obsolete rule 459-005-0058 and changes a citation in 459-005-0060 from 459-005-0055(4) to 459-005-0055(3).
Board Adoption: 07/16/2009
Filed and Effective: 07/21/2009
Text: 459-005-0055
459-005-0058 (repealed)
459-005-0060
PERS Board Adoption Memo
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