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Proposed PERS Administrative Rules
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Proposed Administrative Rules

Definition of Service

Generally, to be eligible for OPSRP membership and benefits, an employee must provide services to a participating PERS employer. ORS 238A.005(7)(b) defines "hour of service" as excluding any hour for which payment is made under a plan maintained solely for the purposes of complying with applicable workers' compensation laws or unemployment compensation laws. However, OAR 459-070-0001(19)(b) provides that "service" means a period in which an employee receives a payment of "salary," as defined in ORS 238.005, or similar payment from workers' compensation or disability. The language allowing workers' compensation payments to qualify a member for service is inconsistent with statute. The proposed rule modification removes the inconsistent language of 459-070-0001(19)(b) in order to align the administrative rule with statute.

Draft Rule

Allocating Costs of Compliance with Generally Accepted Accounting Principles

The PERS Board adopted OAR 459-007-0009 on July 25, 2014, as authorized by House Bill 4155 (2014) (now codified in ORS 238.610). The rule establishes procedures for recovering the additional actuarial and auditing costs associated with providing employers the information necessary to comply with new guidelines regarding how they measure pension expense and report pension liabilities on financial reports. The last sentence of OAR 459-007-0009(2), as previously adopted, states: "In any year in which earnings on those accounts are not sufficient to recover those costs, employer contribution accounts will be reduced by the amount of those costs." While ORS 238.610(1)(a) allows for administrative expenses to be deducted from employer accounts, (1)(b) specifically states that administrative costs may be recovered "only from interest earned on employer contributions..." While there may be a net loss in earnings for a particular year, there are always earnings throughout the year. These additional costs will be deducted from these earnings before netting all earnings and losses for the year.
Draft Rule

Oregon Savings Growth Plan (OSGP)

OAR 459-050-0076, In-Plan Roth Conversion, allows plan participants to convert their pre-tax dollars in OSGP to after-tax and move their money to the Roth 457 account. Initially, Internal Revenue Code only allowed this option after plan participants had a severance from employment. However, with the passage of the American Taxpayer Relief Act of 2012, plan participants are now eligible to convert any pre-tax money in their OSGP account to the Roth 457 account while still employed.
Paragraph (1)(a)(A) has been modified, and paragraph (B) has been deleted because plan participants no longer need a severance of employment to be eligible for an in-plan Roth conversion. Paragraph (1)(a)(E) has been deleted because the IRS has not provided guidance that non-spouse beneficiaries are eligible for an in-plan Roth conversion.
Finally, subsection (3)(a) has been modified because only plan participants who are making a Roth conversion after a severance from employment are required to receive a written explanation on the rollover eligibility of their Roth conversion amount.
OAR 459-050-0120, Self-Directed Brokerage Option, was adopted in 2011 to implement the new option added to the OSGP. Previously, the Oregon State Treasury believed there should be some restrictions on the amount that plan participants could transfer into the Self-Directed Brokerage Option. Therefore, it was required that participants have at least $20,000 in their OSGP account before they could participate, and they could transfer up to half of that amount. Treasury now believes it is appropriate to lower the option participation restriction to a $10,000 account balance. This change was approved by the Oregon Investment Council at its July 30, 2014 meeting. Subsection (2)(a) of the rule was modified to reflect the new dollar amount.
Draft Rule

Rulemaking Schedule
 Updated October 21, 2014
OAR Title Notice to Board Public Hearing Public comment ends Expected adoption date Manager


  • In-Plan Roth Conversion
  • Self-Directed Brokerage Option 
9/26/14 10/21/14 10/30/14 11/21/14 GLB
459-007-0009 Allocating Costs of Compliance with GAAP

temp adoption

11/25/14 12/31/14
1/30/15 SV
Definition of Service 11/21/14 11/25/14 12/31/14 1/30/15 ECK

PERS Health Insurance Program

  • Enrollment
  • Eligibility
  • Appeals
1/30/15 2/24/15 3/6/15 3/30/15 MK