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
Pre-Retirement Death Benefit Payout
The federal SECURE Act of 2019 modified the required minimum distribution (RMD) rules under the Internal Revenue Code (IRC) with respect to distributions of death benefits under defined contribution plans. Although the Individual Account Program (IAP) is qualified as a separate account within the defined benefit program under IRC §414(k) and is not a defined contribution plan, for purposes of the RMD rules, distributions from the IAP are treated as distributions from a defined contribution plan.
The new RMD rules establish a new term for eligible designated beneficiary (surviving spouse, minor child, disabled or chronically ill, etc.) as well as new standards for these beneficiaries regarding when they must receive distributions. The rules also vary depending on whether the member dies before or after the date they are required to begin receiving payments.
Staff have amended the existing RMD OAR 459-005-0560 to remove references to the IAP and created a new OAR 459-0005-0570 which outlines the new RMD rules specific to distributions from the IAP. The new RMD rules also apply to the Oregon Savings Growth Plan (OSGP), so staff have amended the OSGP RMD OAR 459-050-0300 with the new federal standards as well.
Draft Rule: 459-005-0560
Notice of Rulemaking: Notice Required Minimum Distributions
Self-Directed Brokerage Account Change
The self-directed brokerage option (SDBO) within OSGP has been available since 2011 and offers participants flexibility, increased diversification, and the ability to manage specific investments within their OSGP account. Currently, to take advantage of the SDBO, participants must have a minimum OSGP balance of $10,000, and can transfer a maximum of 50 percent of their account to the SDBO. With recommendation from both the OSGP Advisory Committee and the Oregon Investment Council, PERS staff is seeking to amend OAR 459-050-0120 to lower the minimum account balance requirement for trading into the self-directed brokerage option to $5,000 and increase the maximum percentage of account balance that can be traded into the self-directed brokerage option to 90%.
Draft Rule: 459-050-0120
Notice of Rulemaking: Notice of PCRA change
Memo: relaying OSGP advisory board findings
Rulemaking Schedule updated June 2, 2023