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Proposed PERS administrative rules

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


Related links

Recently Adopted PERS Administrative Rules

Comment on Administrative Rules

PERS Administrative Rules (Chapter 459 can be found on the Oregon State Archives website.)