Proposed administrative rules
Contingency Reserve Subaccount Rule s Rule
At the board meeting on December 1, 2023, staff presented to the Board a request for approval to use the contingency
reserve fund to pay off an outstanding PERS contribution liability of a defunct employer in the amount of $2,140.59. The
Board asked staff to investigate the possibility of streamlining the administrative process for using the contingency
reserve fund to pay off small deficit amounts in the future.
In response to the Board’s request, staff recommends the Board establish a contingency reserve subaccount through
rulemaking which the Board can fund by approving transfers from the contingency reserve account. Staff will have
authority to use the funds in the subaccount for the same purposes as outlined for the contingency reserve account in
ORS 238.670, limited to $50,000 per incident. The $50,000 was determined by reviewing past requests and the possible
need for contingency reserve funds relating to potentially insolvent employers. Most of those amounts are under $30,000,
but there is the possible need for higher amounts relating to potentially insolvent employers.
With this recommendation, the Board has control over how much money will be made available in the contingency reserve
subaccount and PERS staff is additionally required to provide an annual report to the Board on the use of moneys in the
subaccount. This streamlines the administrative process for small deficit amounts while retaining the Board’s control
over the use of the contingency reserve fund.
Draft Rule: 459-005-0625
Notice of Rulemaking: Notice of Rulemaking to Contingency Reserve Subaccount Rule
Delegation to Director and Staff Rule
As staff was putting together a request for proposals (RFP) for consulting services related to the PERS Health Insurance
Program (PHIP) in 2021, they identified an ambiguity relating to the authority to award contracts for the PHIP
consulting services. While ORS 238.645 and OAR 459-001-0025 provide the Director the authority to administer the system
generally, it is unclear whether that delegation includes the authority to contract with consultants for PHIP, as that
authority is specifically placed with the Board in ORS 238.410(6).
To resolve this ambiguity, staff recommends clarifying this authority by amending OAR 459-001-0025 to specifically
include the authority to contract with and retain consultants for PHIP . The rationale for this recommendation is
two-fold: 1. This authority is consistent with the Director’s existing authority to contract for the purpose of
administering the system generally, and 2.
Under our current practice, staff performs all the tasks that are necessary to solicit bids for the consulting services,
evaluate the quality of the bids and select a final candidate. The Director, who works closely with staff daily, can
then make the final contracting decision without waiting for the next available board meeting and the Board can avoid
having to duplicate any work that has been performed by staff with respect to selecting a consulting service. This
provides both administrative ease and timeliness.
Draft Rule: 459-001-0025
Notice of Rulemaking: Notice of Rulemaking to Delegation to Director and Staff Rule
Service Retirement Applications Requirements Rule
Under ORS 238.455, PERS is required to begin monthly benefit payments within 62 days from the date that the member’s
first monthly payment is due. Because PERS pays benefits in arrears, staff often refer to this requirement as a 92-day
deadline to account for the month between a member’s effective retirement date and benefits becoming payable. If the
agency is unable to calculate a member’s actual (i.e., not estimated) monthly benefit amount by the deadline, statute
requires that PERS begin monthly payments in an estimated amount until the actual benefit can be established.
On occasion, PERS is unable to calculate a member’s actual monthly benefit amount due to the member not providing all
required information or documentation. This can be particularly concerning as Oregon Administrative Rules require PERS
to receive certain documents and information, such as member and beneficiary verification of age, before the agency
establishes benefits.
When required documentation supporting service retirement applications has not been received by PERS, the Intake &
Review Team sends members multiple follow-up letters, and the Team One Follow-Up Team makes contact with the member via
telephone. Despite these efforts, there are occasions when members do not provide the required information in time for
PERS to calculate the benefit by the statutory deadline.
Notice of Rulemaking: Notice of Rulemaking for Service Retirement Application Requirements Rules
Rulemaking Schedule and Pending Rules updated July 26, 2024
PUBLIC COMMENT HEARING
DATE: 08/20/2024
TIME: 2:00 PM - 3:00 PM
REMOTE MEETING DETAILS
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CONFERENCE ID: 614314705
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