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
IAP Target Date Funds
On September 20, 2017, the Oregon Investment Council (OIC) adopted a Target Date Fund (TDF) investment structure. This new investment structure groups member accounts together in TDFs based on the year of birth of the member and adjusts the investment allocation as each group approaches retirement. While the OIC has established the investment structure, PERS is responsible for administering the individual member accounts. To that end, PERS will allocate each member account to the appropriate TDF based on the member’s year of birth.
Currently, the IAP has one investment allocation across the fund and all members receive the same rate of return. With different investment allocations for each TDF, each TDF will have a different rate of return. The purpose of the new rule and amendments to the existing rules is to explain how and when a member’s IAP account will be allocated to a particular TDF.
Summary of Rule Modifications and Additions
OAR 459-007-001: “Retirement allocation fund” and “Target date fund” are new terms that have been defined and added to this rule.
OAR 459-007-0005: Section (6) of the rule has been amended to reflect the change from a single investment allocation structure where the entire IAP program experiences one rate of return to an investment structure where there will be different rates of return within each TDF. The amended and new language to the rule further clarify that each IAP account balance will only be credited with earnings or losses of the TDF it is invested in and will only be responsible for a pro rata share of the administrative expenses of that target date fund.
OAR 459-007-0320: Section (2) of this rule has been deleted so that the concept of earnings crediting for when a member elects a lump-sum retirement or withdrawal under the IAP can be combined into a single section under section (1) of the rule. By adding the words “member’s target date fund’s” to both paragraphs (1) and (2), PERS is acknowledging the new TDF investment structure and clarifying that earnings crediting on the IAP account balance prior to either a lump-sum retirement or a withdrawal will be based upon the returns experienced by the target date fund the member was invested in.
OAR 459-007-0330: This rule deals with earnings crediting of the IAP account balance when a member elects an installment retirement option. The amendments to the rule make it clear that the member’s IAP account balance earnings crediting for both the calendar year immediately prior to retirement and for the calendar year of retirement up to the first installment payment will be based upon the rate of return experienced by the target date fund the member was invested in during that time. After the first retirement installment payment, the member’s IAP account balance will be invested in the retirement allocation fund and all future earnings crediting will be based on the rate of return experienced by the retirement allocation fund.
OAR 459-080-0015: This is a brand new rule acknowledging that members’ IAP account balances will now be invested in target date funds based upon their respective birth years. In order to further facilitate the implementation of the target date fund structure, the rule also lays out how target date fund investing would be handled in the following three specific factual scenarios:
(1) In the event of a divorce decree that creates a separate IAP account for an alternate payee, the AP’s account balance will be invested in a target date fund based on the alternate payee’s birth year in the calendar year that PERS administers the divorce decree.
(2) Retired members who took an installment payment option will have their remaining IAP account balance and any new contributions invested in the retirement allocation fund if they reestablish active membership by returning to PERS employment.
(3) The IAP account balance of a member who dies pre-retirement will be moved to the retirement allocation fund until the money is paid out to a beneficiary or beneficiaries.
While statute provides the general requirements for a post-doctoral scholar position classification, further clarification in rule is necessary to ensure consistent administration. This rule further clarifies certain statutory provisions, ensuring that all universities use consistent standards in classifying a position as a “post-doctoral scholar” position.
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.
Updated December 1, 2017
||Notice to Board
||Notice to Board
||Public comment ends
||Expected adoption date
|Disability Definitions and Eligibility
|IAP Target Date Funds