Recently Adopted PERS Administrative Rules
Comment on Administrative Rules
PERS Administrative Rules (Chapter 459 can be found on the Oregon State Archives website.)
Proposed Administrative Rules
amount payable to any PERS member for a calendar year is limited by Internal
Revenue Code Section 415(b). The applicable dollar limitation may be increased
by a cost-of-living adjustment, as determined by the IRS. Currently, OAR
459-005-0535 allows for such an adjustment; however, to provide further
clarity, PERS staff seek to amend the rule to include language specifying that
the cost-of-living adjustment is applied to the applicable dollar limitation
for years between a member’s separation from employment and retirement, as well
as to the years after the member begins receiving benefits. This clarity is
being provided in response to an internal audit that reviewed compliance with
the IRS’ Section 415 limitations
Draft rule: 459-005-0535
Disability Definitions and Eligibility
Modify rules regarding disability to update and add definitions; update specialist requirements; address effect of unemployment benefits in determining disability eligibility; clarify when PERS may request evaluations or exams; add physical capacity to independent evaluations; clarify periodic review standard; clarify burden of proof for OPSRP disability.
Employer Side Accounts
Employers can make lump-sum payments to PERS in addition to the regular employer contributions calculated as a percent of payroll. Lump-sum contributions can occur when a PERS employer has a budget surplus or chooses to pre-fund their obligations by issuing pension obligation bonds. These lump-sum payments are put into side accounts that are then applied to offset a portion of the employer’s PERS contribution rate.
On March 31, 2017, Governor Kate Brown submitted a letter asking the PERS Board to consider revising the rules around employer side accounts to give employers more flexibility. On April 21, 2017, PERS staff met with the Employer Advisory Group to discuss questions and concerns about the current side-account process and solicit employer input on how the process could be improved. Based on that input, staff is reviewing current rules and processes governing lump-sum payments and side accounts to determine the operational impacts and potential risks of those suggested changes.
In addition, the employer representatives are also preparing to introduce a bill amending ORS 238.229 that, if passed, would have an impact on these employer side account rules.
Therefore, PERS staff is opening these rules for rulemaking and intends to keep the process open until at least the end of the 2017 legislative session.
Staff will return with policy recommendations as to where the current constraints should be eased to facilitate further side accounts by employers, after reviewing public comment and any further stakeholder input as well as the outcome of any efforts to amend the relevant statute.
Updated September 29, 2017
||Notice to Board
||Notice to Board
||Public comment ends
||Expected adoption date
|Disability Definitions and Eligibility
|Employer Side Accounts
|Annual Benefit Limitation
IAP Target Date Funds