Proposed administrative rules
Tax Remedy Rule
As provided in ORS 238.362 to ORS 238.378, PERS benefits are increased to account for Oregon personal income tax for
individuals who had established PERS membership before July 14, 1995. This benefit increase is also known
colloquially
as Tax Remedy. The Oregon legislature in 2011 and 2013 made changes to the tax remedy statute such that retirees
whose
PERS benefits are not subject to Oregon personal income tax are not eligible to receive tax remedy. PERS is
authorized
to exchange information with the Oregon Department of Revenue (DOR) for the purpose of evaluating whether someone’s
PERS
benefits are subject to Oregon personal income tax.
After a system upgrade, DOR is now able to provide additional data on retirees who filed a partial year tax return
(40P), specifically, the beginning and end dates the retiree was in the state. The proposed amendments to the rule
outline how PERS staff will use these additional data in determining tax remedy eligibility.
Notice of Rulemaking
OAR 459-013-0310
Eligibility Requirement Rule Updates
Prior to 2004, employers reported limited data to PERS on paper for employees only once they served their waiting
time
and established membership. Today, employers report data to PERS electronically, generally every pay period. They
report
employee demographic data (date of birth, address, etc.) upon hire for all employees, whether they are in qualifying
or
non-qualifying positions, part time, full time, regular members, or retirees working after retirement. The
information
PERS receives from employers today is much more detailed than the information PERS received prior to 2004.
Evaluating the older data, particularly pre-2004, or legacy, data can be challenging because membership eligibility
has
changed and evolved over the years, leading to inconsistencies and unintended consequences. To address this, PACS
Policy
staff worked with a cross-divisional team to conduct a wholistic review of all eligibility policies, from
establishing
membership, to maintaining membership and accruing creditable service/retirement credit.
The goal in reviewing the policies was to ensure that our administration is consistent with governing Oregon Revised
Statutes (ORS), Oregon Administrative Rules (OAR), and agency policies. The review identified differing membership
determination standards for employment occurring before August 29, 2003. The proposed rule amendments provide
clarification on how to make accurate membership determinations, and situations that require special consideration,
such
as employer reporting for school employees.
Notice of Rulemaking
OAR 459-005-0015
OAR 459-010-0003
OAR 459-010-0010
OAR 459-010-0014
OAR 459-075-0150
Yearly Updates
The Internal Revenue Service and Social Security Administration revises various dollar limits annually based on
cost-of-living adjustments. These revisions are used throughout the PERS plan’s statutes and rules, but revisions to the
limits must be adopted by the legislature or PERS Board to be effective. Additionally, other yearly limits are based on
Consumer Price Index are put forth for yearly PERS Board approval.
Notice of Rulemaking
OAR 459-005-0525
OAR 459-005-0545
OAR 459-017-0060
OAR 459-045-0090
OAR 459-080-0400
OAR 459-080-0500
Rulemaking Schedule Update 1/31/2025