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OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM









 

DIVISION 17
REEMPLOYED RETIRED MEMBERS

459-017-0060
Reemployment of Retired Members
(1) For purposes of this rule, “retired
member” means a member of the PERS Chapter 238 Program who is retired for
service.
(2) Reemployment under ORS
238.082. A retired member may be employed under 238.082 by a participating employer
without loss of retirement benefits provided:
(a) The period or periods
of employment with one or more participating employers total less than 1,040 hours
in a calendar year; or
(b) If the retired member
is receiving retirement, survivors, or disability benefits under the federal Social
Security Act, the period or periods of employment total less than 1,040 hours in
a calendar year or no more than the total number of hours in a calendar year that,
at the retired member’s specified hourly rate of pay, limits the annual compensation
of the retired member to an amount that does not exceed the following Social Security
annual compensation limits:
(A) For retired members who
have not reached full retirement age under the Social Security Act, the annual compensation
limit is $15,720; or
(B) For the calendar year
in which the retired member reaches full retirement age under the Social Security
Act and only for compensation for the months before reaching full retirement age,
the annual compensation limit is $41,880.
(3) The limitations on employment
in section (2) of this rule do not apply if the retired member has reached full
retirement age under the Social Security Act.
(4) The limitations on employment
in section (2) of this rule do not apply if:
(a) The retired member meets
the requirements of ORS 238.082(4), (5), (6), (7) or (8), and did not retire at
a reduced benefit under the provisions of 238.280(1), (2), or (3);
(b) The retired member retired
at a reduced benefit under ORS 238.280(1), (2) or (3), is employed in a position
that meets the requirements of 238.082(4), the date of employment is more than six
months after the member’s effective retirement date, and the member’s
retirement otherwise meets the standard of a bona fide retirement;
(c) The retired member is
employed by a school district or education service district as a speech-language
pathologist or speech-language pathologist assistant and:
(A) The retired member did
not retire at a reduced benefit under the provisions of ORS 238.280(1), (2), or
(3); or
(B) If the retired member
retired at a reduced benefit under the provisions of ORS 238.280(1), (2) or (3),
the retired member is not so employed until more than six months after the member’s
effective retirement date and the member’s retirement otherwise meets the
standard of a bona fide retirement;
(d) The retired member meets
the requirements of section 2, chapter 499, Oregon Laws 2007;
(e) The retired member is
employed for service during a legislative session under ORS 238.092(2); or
(f) The retired member is
on active state duty in the organized militia and meets the requirements under ORS
399.075(8).
(g) For purposes of population
determinations referenced by statutes listed in this section, the latest federal
decennial census shall first be operative on the first day of the second calendar
year following the census year.
(h) For purposes of ORS 238.082(6),
a retired member replaces an employee if the retired member:
(A) Is assigned to the position
of the employee; and
(B) Performs the duties of
the employee or duties that might be assigned to an employee in that position.
(5) If a retired member is
reemployed subject to the limitations of ORS 238.082 and section (2) of this rule,
the period or periods of employment subsequently exceed those limitations, and employment
continues into the month following the date the limitations are exceeded:
(a) If the member has been
retired for six or more calendar months:
(A) PERS will cancel the
member’s retirement.
(i) If the member is receiving
a monthly service retirement allowance, the last payment to which the member is
entitled is for the month in which the limitations were exceeded.
(ii) If the member is receiving
installment payments under ORS 238.305(4), the last installment payment to which
the member is entitled is the last payment due on or before the last day of the
month in which the limitations were exceeded.
(iii) If the member received
a single lump sum payment under ORS 238.305(4) or 238.315, the member is entitled
to the payment provided the payment was dated on or before the last day of the month
in which the limitations were exceeded.
(iv) A member who receives
benefits to which he or she is not entitled must repay those benefits to PERS.
(B) The member will reestablish
active membership the first of the calendar month following the month in which the
limitations were exceeded.
(C) The member’s account
must be rebuilt in accordance with the provisions of section (7) of this rule.
(b) If the member has been
retired for less than six calendar months:
(A) PERS will cancel the
member’s retirement effective the date the member was reemployed.
(B) All retirement benefits
received by the member must be repaid to PERS in a single payment.
(C) The member will reestablish
active membership effective the date the member was reemployed.
(D) The member account will
be rebuilt as of the date that PERS receives the single payment. The amount in the
member account must be the same as the amount in the member account at the time
of the member’s retirement.
(6) For purposes of determining
period(s) of employment in section (2) of this rule:
(a) Hours of employment are
hours on and after the retired member’s effective retirement date for which
the member receives wages, salary, paid leave, or other compensation.
(b) Hours of employment that
are performed under the provisions of section (4) of this rule on or after the later
of January 1, 2004 or the operative date of the applicable statutory provision are
not counted.
(7) Reemployment under ORS
238.078(1). If a member has been retired for service for more than six calendar
months and is reemployed in a qualifying position by a participating employer under
the provisions of 238.078(1):
(a) PERS will cancel the
member’s retirement effective the date the member is reemployed.
(b) The member will reestablish
active membership on the date the member is reemployed.
(c) If the member elected
a benefit payment option other than a lump sum option under ORS 238.305(2) or (3),
the last monthly service retirement allowance payment to which the member is entitled
is for the month before the calendar month in which the member is reemployed. Upon
subsequent retirement, the member may choose a different benefit payment option.
(A) The member’s account
will be rebuilt as required by ORS 238.078 effective the date active membership
is reestablished.
(B) Amounts from the Benefits-In-Force
Reserve (BIF) credited to the member’s account under the provisions of paragraph
(A) of this subsection will be credited with earnings at the BIF rate or the assumed
rate, whichever is less, from the date of retirement to the date of active membership.
(d) If the member elected
a partial lump sum option under ORS 238.305(2), the last monthly service retirement
allowance payment to which the member is entitled is for the month before the calendar
month in which the member is reemployed. The last lump sum or installment payment
to which the member is entitled is the last payment due before the date the member
is reemployed. Upon subsequent retirement, the member may not choose a different
benefit payment option unless the member has repaid to PERS in a single payment
an amount equal to the lump sum and installment benefits received and the earnings
that would have accumulated on that amount.
(A) The member’s account
will be rebuilt as required by ORS 238.078 effective the date active membership
is reestablished.
(B) Amounts from the BIF
credited to the member’s account under the provisions of paragraph (A) of
this subsection, excluding any amounts attributable to repayment by the member,
will be credited with earnings at the BIF rate or the assumed rate, whichever is
less, from the date of retirement to the date of active membership.
(e) If the member elected
the total lump sum option under ORS 238.305(3), the last lump sum or installment
payment to which the member is entitled is the last payment due before the date
the member is reemployed. Upon subsequent retirement, the member may not choose
a different benefit payment option unless the member has repaid to PERS in a single
payment an amount equal to the benefits received and the earnings that would have
accumulated on that amount.
(A) If the member repays
PERS as described in this subsection the member’s account will be rebuilt
as required by ORS 238.078 effective the date that PERS receives the single payment.
(B) If any amounts from the
BIF are credited to the member’s account under the provisions of paragraph
(A) of this subsection, the amounts may not be credited with earnings for the period
from the date of retirement to the date of active membership.
(f) If the member received
a lump sum payment under ORS 238.315:
(A) If the payment was dated
before the date the member is reemployed, the member is not required or permitted
to repay the benefit amount. Upon subsequent retirement:
(i) The member may choose
a different benefit payment option.
(ii) The member’s retirement
benefit will be calculated based on the member’s periods of active membership
after the member’s initial effective retirement date.
(B) If the payment was dated
on or after the date the member is reemployed, the member must repay the benefit
amount. Upon subsequent retirement:
(i) The member may choose
a different benefit payment option.
(ii) The member’s retirement
benefit will be calculated based on the member’s periods of active membership
before and after the member’s initial effective retirement date.
(iii) The member’s
account will be rebuilt as described in ORS 238.078(2).
(g) A member who receives
benefits to which he or she is not entitled must repay those benefits to PERS.
(8) Reemployment under ORS
238.078(2). If a member has been retired for less than six calendar months and is
reemployed in a qualifying position by a participating employer under the provisions
of 238.078(2):
(a) PERS will cancel the
member’s retirement effective the date the member is reemployed.
(b) All retirement benefits
received by the member must be repaid to PERS in a single payment.
(c) The member will reestablish
active membership effective the date the member is reemployed.
(d) The member account will
be rebuilt as of the date that PERS receives the single payment. The amount in the
member account must be the same as the amount in the member account at the time
of the member’s retirement.
(e) Upon subsequent retirement,
the member may choose a different benefit payment option.
(9) Upon the subsequent retirement
of any member who reestablished active membership under ORS 238.078 and this rule,
the retirement benefit of the member must be calculated using the actuarial equivalency
factors in effect on the effective date of the subsequent retirement.
(10) The provisions of paragraphs
(7)(c)(B), (7)(d)(B), and (7)(e)(B) of this rule are applicable to retired members
who reestablish active membership under ORS 238.078 and this rule and whose initial
effective retirement date is on or after March 1, 2006.
(11) Reporting requirement.
A participating employer that employs a retired member must notify PERS in a format
acceptable to PERS under which statute the retired member is employed.
(a) Upon request by PERS,
a participating employer must certify to PERS that a retired member has not exceeded
the number of hours allowed under ORS 238.082 and section (2) of this rule.
(b) Upon request by PERS
a participating employer must provide PERS with business and employment records
to substantiate the actual number of hours a retired member was employed.
(c) Participating employers
must provide information requested under this section within 30 days of the date
of the request.
(12) Sick leave. Accumulated
unused sick leave reported by an employer to PERS upon a member’s retirement,
as provided in ORS 238.350, may not be made available to a retired member returning
to employment under sections (2) or (7) of this rule.
(13) Subsections (4)(c) and
(4)(d) of this rule are repealed effective January 2, 2016.
(14) This rule is effective
January 1, 2015.
Stat. Auth.: ORS 238.650
Stats. Implemented: ORS 238.078,
238.082, 238.092, 399.075, & 2007 OL Ch. 499 & 774
Hist.: PERS 1-1994, f. 3-29-94,
cert. ef. 4-1-94; PERS 1-1996, f. & cert. ef. 3-26-96; Renumbered from 459-010-0182;
PERS 13-1998, f. & cert. ef. 12-17-98; PERS 7-2001, f. & cert. ef. 12-7-01;
PERS 18-2003(Temp), f. & cert. ef. 12-15-03 thru 5-31-04; PERS 19-2004, f. &
cert. ef. 6-15-04; PERS 3-2006, f. & cert. ef. 3-1-06; PERS 18-2007, f. &
cert. ef. 11-23-07; PERS 3-2009, f. & cert. ef. 4-6-09; PERS 11-2009, f. &
cert. ef. 12-1-09; PERS 7-2012, f. & cert. ef. 3-28-12; PERS 5-2013, f.
& cert. ef. 3-29-13; PERS 3-2014, f. & cert. ef. 1-31-14; PERS 7-2015, f.
& cert. ef. 5-29-15

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