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Recently Adopted PERS Administrative Rules
On April 30, 2015, the Oregon Supreme Court issued its ruling in the Moro case, invalidating the cost-of-living adjustment (COLA) reductions enacted by Senate Bill 822 (effective May 6, 2013) and Senate Bill 861 (effective October 6, 2013) as applied to benefits earned before the effective dates of those bills. As a result, members who have earned benefits both prior to the effective dates of the bills as well as after the effective dates will receive a blended COLA based on the COLA structure in effect when the benefits were earned. While the court specifically did not provide guidance on how to blend the different COLAs, it did reference a service time ratio method as an example of how a blended COLA could be derived.
In addition, the Supreme Court ruling voided the supplementary payment provision in SB 861, so OAR 459-005-0520, Supplementary Payment was repealed.
Board Adoption:                09/25/2015
Effective:                          09/25/2015
Text:                                459-005-0510
                                       PERS Board Adoption Memo    
Assumed Rate   
At the July 31, 2015 PERS Board meeting, staff gave notice of rulemaking to implement any change to the assumed rate. The adopted rule sets forth the new assumed rate of 7.50 percent adopted by the Board.
PERS has counted hours worked post-retirement separately from hours worked pre-retirement in the same calendar year when an OPSRP retired member returns to work. This practice was recently questioned during a review of ORS 238A.245: should hours worked in pre-retirement and post-retirement job segments be combined to count towards the 600 hours of the qualifying position, or can the hours worked post-retirement be counted separately? At the start of 2015, PERS informed employers that a narrow interpretation of the 600 hours standard would combine hours worked pre-retirement and post-retirement in the same calendar year for purposes of determining whether the 600 hours definition of a qualifying position had been met. The rule also specifies that the new assumed rate will be effective for PERS transactions with an effective date of January 1, 2016, consistent with this Board's policy decision from 2013 that changes to the assumed rate will be effective the following January 1, giving staff ample time to perform the necessary preparation, communicate with members and employers, and treating all members who retire in a year that a change is adopted equitable treatment, no matter which month they retire. The new assumed rate is aligned with the new actuarial equivalency factors (AEFs), which will allow for a clear effective date for all transactions that involve calculations using both the latest year-to-date rate and AEF components.
Board Adoption:                09/25/2015
Effective:                          09/25/2015
Text:                                459-007-0007
PERS Board Adoption Memo