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Proposed PERS Administrative Rules
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Proposed Administrative Rules

 

Reemployment of OPSRP Retirees

OPSRP Pension Program retired members who return to work for a PERS participating employer may continue to receive their pension payment so long as they are not working in a qualifying position, which is defined by ORS 238A.005(15) as “one or more jobs with one or more participating public employers in which an eligible employee performs 600 or more hours of service in a calendar year….” Under ORS 238A.245, when an OPSRP retired member works in a qualifying position, the retired member re-establishes active membership and PERS is required to stop their pension payments.
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.
This direction was met with great concern by employers (and some members who had been informed by their employers), who requested that PERS review alternative interpretations and solutions to avoid such a result. The agency initiated this rulemaking to support a broader application of the statute that would allow hours worked by an OPSRP member pre-retirement to count separately from post-retirement hours.
In reviewing the applicable administrative rules, we also discovered that OAR 459-080-0300, regarding reemployed members of the IAP, has not been updated since the institution of the “retire from one, retire from all” standard established in 2011. This rulemaking will also include the necessary modifications to properly align the IAP return to work standard with the member’s respective programs and outlines the effect of the member returning to active membership on their IAP distributions.
Draft Rules:   459-075-0300
                    459-080-0300

 

 

Disability Application     
These rules provide specific timeframes for a member to file an application for a disability retirement (Tier One/Tier Two) or benefit (OPSRP). The member cannot apply before they stop working, but they are not required to be terminated from employment. The definitions for “date of disability,” “date of separation from service,” and “date of termination” in OAR 459-015-0001 were updated and incorporated into the disability rules in October 2011. There were quite a number of rules that required updates and when OAR 459-015-0020 was edited to incorporate the updated defined terms, “date of termination” was inadvertently updated to “date of separation from service” in paragraph (6)(b) when it should have been updated in paragraph (6)(a). Also, “date of termination” in (6)(a) was updated to “date of separation from service” instead of “date of disability.” The proposed edits to the rule correctly update both paragraphs (6)(a) and (6)(b) and propose other minor edits for clarification.
The proposed update to OAR 459-076-0020 incorporates the defined term “date of disability” in one place where it was missed in 2011 and makes other minor edits for clarification.
Draft Rules:   459-015-0020
                    459-076-0020

 

 
Rulemaking Schedule
 Updated June 2, 2015
OAR Title Notice to Board Public Hearing Public comment ends Expected adoption date
459-015-0020
459-076-0020

Disability Application

3/30/15
 
5/29/15
(First Reading)
4/28/15
 
6/23/15
7/1/15 7/31/15
459-075-0300
459-080-0300
OPSRP Reemployed Retirees

5/29/15

6/23/15 7/1/15
7/31/15
459-010-0003
459-075-0010
Eligibility and Membership 7/31/15 8/25/15 9/1/15 9/25/15
459-005-0510
459-005-0520

COLA/Supplementary Payments

7/31/15
8/25/15
(Tigard)
 
8/27/15
(Salem)
9/1/15 9/25/15