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Retirement Benefits


Published: 2015

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The Oregon Administrative Rules contain OARs filed through November 15, 2015

 

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OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM









 

DIVISION 13
RETIREMENT BENEFITS

459-013-0040
Documentary Evidence
(1) In order to receive retirement benefits, each member of the system shall furnish to the Retirement Board reasonably satisfactory evidence as to his or her date of birth.
(2) In order for a member to receive benefits under option No. 2 or 3, the Retirement Board must be furnished with reasonably satisfactory evidence as to the beneficiary's date of birth.
(3) Any documentary evidence or photostatic copies thereof, submitted to the Retirement Board as proof of date of birth shall become the property of the board and will not be returned under any circumstances (naturalization or citizenship papers may be submitted for the inspection of the Board after which they will be returned).
Stat. Auth.: ORS 238 .650

Stats. Implemented: ORS 238

Hist.: PER 8, f. 12-15-55; PERS 1-1996, f. & cert. ef. 3-26-96; Renumbered from 459-010-0065
459-013-0050
Combined
Service
(1) For purposes
of this rule:
(a) “Combined
service” means periods of active membership in two or more different classifications.
(b) “Concurrent
service” means active membership for the same period with two or more different
employers in two or more different classifications or actuarial groups.
(2) A
member who has combined service shall have their service retirement or disability
retirement allowance calculated as provided in ORS Chapter 238 and this rule. The
benefit calculations may include:
(a) Account
balance, and final average salary as of the effective retirement date;
(b) Creditable
service as provided under OAR 459-010-0014;
(c) Prorated
creditable service for periods of concurrent service;
(d) All
calculation methods applicable to the member under ORS 238.300 or 238.320;
(e) The
optional forms of retirement allowance selected by the member under ORS 238.305
or 238.325;
(f) For
early and normal retirement eligibility, the rules as described in OAR 459-010-0019;
(g) A
statutory factor applicable for the classification of the member during each period
of creditable service;
(h) A
single early retirement factor, if applicable;
(i) The
actuarial equivalency factor tables in effect on the effective retirement date;
and
(j) A
variable adjustment for members who participated in the Variable Annuity Program
on and after January 1, 1982.
Stat. Auth.:
ORS 238.650

Stats.
Implemented: ORS 238.260, 238.280, 238.300, 238.305, 238.320 & 238.325

Hist.:
PERS 4-2011, f. & cert. ef. 8-4-11
459-013-0060
Payment of Retirement Benefits
(1) Retirement benefits shall be payable
each month as of the first day of the month following the effective date of retirement.
At the time of death, accrued benefits shall be payable as provided under OAR 459-014-0050(4).
(2) If a retiree elects to
receive more than one installment payment as provided under ORS 238.305(4), the
subsequent installment payments will be paid on the anniversary of the first day
of the month that the initial installment payment was made.
Stat. Auth.: ORS 238.650
Stats. Implemented: ORS 238.300
& 238.305
Hist.: PER 8, f. 12-15-55;
PERS 1-1996, f. & cert. ef. 3-26-96; Renumbered from 459-010-0070; PERS 21-2005,
f. & cert. ef. 11-1-05; PERS 6-2013, f. & cert. ef. 7-26-13
459-013-0110
Eligibility for Early Benefits
A member who reaches earliest retirement age under ORS 238.280 becomes eligible for a service retirement benefit that will be paid upon written application to the Board. After becoming eligible under that section, a member may not withdraw their account under ORS 238.265 nor will their membership terminate by operation of ORS 238.095(2).
Stat. Auth.: ORS 238.650

Stats. Implemented: ORS 238.280 & 238.095

Hist.: PER 8, f. 12-15-55; PERS 1-1996, f. & cert. ef. 3-26-96; Renumbered from 459-010-0090; PERS 5-1999, f. & cert. ef. 11-15-99; PERS 15-2007, f. & cert. ef. 11-23-07
459-013-0260
Effective Date Used in the Establishment of Service Retirement Benefits
(1) A member’s service retirement allowance under ORS 238.300 and 238.305 will be established as of the member’s effective date of retirement.
(2) A member’s effective date of retirement is the later of:
(a) The first day of the calendar month specified by the member, who is eligible for retirement under the provisions of ORS 238.280 or 238.005, on their service retirement application; or
(b) The first of the calendar month following the date an application is received by the Public Employees Retirement System (PERS); or
(c) The first of the calendar month following the date of separation from all employers participating in PERS and in the same controlled group.
(3) For the purpose of this rule, “controlled group” is a group of employers required to be treated as a single employer for the purpose of satisfying the requirements for qualified retirement plans under federal law.
(4) The effective date of this rule is January 1, 2010.
Stat. Auth.: ORS 238.650

Stats. Implemented: ORS 238.300 & 238.305

Hist.: PERS 10-2000, f. 12-15-00 cert. ef. 1-1-01; PERS 20-2005, f. 11-1-05, cert. ef. 11-4-05; PERS 16-2008, f. & cert. ef. 11-26-08
459-013-0280
Calculation of Variable Match
This rule will be used to determine the member's retirement allowance under the Money Match method provided for in ORS 238.300(2)(b)(A) for members that are subject to the variable annuity adjustment provided under ORS 238.260(12). To calculate these members' retirement allowance, the following process will be used:
(1) Annuity Calculation. The balance in the member's regular account will be combined with a projected balance based on what the member's variable account balance would have been had the member's contributions to the variable account been made to the regular account instead. If the member chooses a retirement allowance that includes an annuity, this combined balance will be converted to an annuity using the appropriate actuarial equivalency factor to determine that annuity.
(2) Pension Calculation. The pension provided for in ORS 238.300(2)(b)(A) will be determined by applying an actuarial equivalency factor to the combined balance determined in accordance with section (1).
(3) Variable Adjustment. The retirement allowance calculated under sections (1) and (2), as applicable, will be increased or decreased by applying an actuarial equivalency factor to the difference between the actual balance in the member's variable account on their effective retirement date and the projected balance determined under section (1) above.
(4) The provisions of this rule only apply to members who participated in the variable account program by making contributions to their variable account on or after January 1, 1982. The adjustment provided for by ORS 238.260(12) and this rule will apply only to those contributions and associated earnings after that date.
(5) In determining "the portion of the annuity payable from the Variable Annuity Account" as required by ORS 238.260(10) and (11), all of the member's variable account will be included, including the portion that is included in calculating the variable adjustment at retirement specified in ORS 238.260(12).
(6) The method described in this rule to calculate a member's allowance will also be followed to calculate the "look-back" benefit as described in section 4 of chapter 68, Oregon Laws 2003 (HB 2004). The difference in value between the member's variable and what those contributions would have earned in the regular account as of June 30, 2003 will be used as the basis for the "look-back" comparison.
(7) If a member who has a variable account elects to transfer that account balance to the regular account under ORS 238.260(14), the difference between the amount in the variable account (subject to the limitations in section (4) of this rule) and what that portion of the variable account would have been had the member instead invested solely in the regular account shall be determined as of the date of the transfer. That difference will be applied to the member's regular account as described in section (1) of this rule and also pursuant to ORS 238.260(12)(b) or (c) to increase or decrease the member's retirement allowance.
(8) The provisions of this rule are effective July 1, 2004.
[ED. NOTE: Example referenced is available from the agency.]
Stat. Auth: ORS 238.650

Stats. Implemented: ORS 238.260(12); 238.300(1) & (2)

Hist.: PERS 10-2004(Temp), f. 4-15-04 cert. ef. 7-1-04 thru 10-31-04; PERS 18-2004, f. 6-15-04, cert. ef. 7-1-04
459-013-0310
Payment of Increased
Benefits under ORS 238.372 to 238.384
(1) For purposes of determinations under
ORS 238.372 to 238.384:
(a) “Person”
includes a member, an alternate payee, or a beneficiary.
(b) The increased benefit
percentage to be added to a benefit paid to a beneficiary under ORS 238.390, 238.395,
238.400, 238.405, or under an optional form of retirement allowance under ORS 238.305
or 238.325 will be determined based on:
(A) The increased benefit
percentage(s) for which the member is otherwise eligible under ORS 238.364, 238.366
and 238.368; and
(B) The residency of the
beneficiary.
(2) PERS will make the following
determinations on residency status for the purpose of determining increased benefit
eligibility under ORS 238.372 to 238.384, based upon the yearly Oregon personal
income tax return information provided by the Department of Revenue.
(a) If the Department of
Revenue notifies PERS that a person:
(A) Filed Oregon personal
income tax as a resident, PERS will treat the person as a resident of Oregon.
(B) Filed Oregon personal
income tax as a non-resident, PERS will treat the person as a non-resident of Oregon,
except as provided in section (3) below.
(C) Did not file Oregon personal
income tax, PERS will treat the person as a non-resident of Oregon, except as provided
in section (3) below.
(D) Filed Oregon personal
income tax as a partial-year resident and the prior year the person filed personal
income tax as a resident, PERS will treat the person as a non-resident of Oregon,
except as provided in section (3) below.
(E) Filed Oregon personal
income tax as a partial-year resident and the prior year the person filed personal
income tax as a non-resident, PERS will treat the person as a resident of Oregon.
(F) Filed Oregon personal
income tax as a partial-year resident and the prior year the person did not file
personal income tax, PERS will treat the person as a resident of Oregon.
(b) If PERS cannot make a
residency status determination based upon information provided by the Department
of Revenue or the person did not otherwise provide PERS with residency status information,
PERS will treat the person as a non-resident of Oregon, except as provided in section
(3) below.
(3) Residency status information
submitted on a form provided by PERS and received between January 1 and December
15 of the current calendar year will, for purposes of determining increased benefit
eligibility under ORS 238.372 to 238.384, supersede any Oregon personal income tax
return information provided by the Department of Revenue pursuant to section (2)
of this rule.
Stat. Auth.: ORS 238.650
Stats. Implemented: ORS 238.362,
238.364, 238.366, 238.368 & 238.372 - 238.384
Hist.: PERS 6-2012, f. &
cert. ef. 3-28-12; PERS 8-2013, f. & cert. ef. 9-27-13
459-013-0320
Payment of Increased
Benefits to an Alternate Payee
(1) The provisions of this rule apply
to an alternate payee who receives retirement benefit payments derived from an “alternate
payee account” or a separate benefit option as provided under OAR 459-045-0010(2)
or (3)(b).
(2) If an alternate payee
is eligible to receive increased benefits under ORS 238.465(5), the percentage of
the increased benefit payable to the member, as determined under ORS 238.364, 238.366,
238.368, and 238.372 to 238.384, is the increased benefit percentage for which the
alternate payee is eligible. If the member predeceases the alternate payee, the
increased benefit percentage payable to the member at the time of death remains
the increased benefit percentage for which the alternate payee is eligible.
(3) If the alternate payee
is eligible for the increased benefit under section (2), payment of the increased
benefit to the alternate payee under ORS 238.372 to 238.384 is determined by the
residency of the alternate payee.
Stat. Auth.: ORS 238.650
Stats. Implemented: ORS 238.362,
238.364, 238.366, 238.465 & 238.372 - 238.384
Hist.: PERS 6-2012, f. &
cert. ef. 3-28-12; PERS 8-2013, f. & cert. ef. 9-27-13

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contained in the Administrative Order filed at the Archives Division,
800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the
published version are satisfied in favor of the Administrative Order.
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