Oregon Administrative Rules
Chapter 459 - OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM
Division 10 - MEMBERSHIP
Section 459-010-0045 - Substitution of Annuity

(1) A public employer participating in the Public Employees Retirement System may petition the Public Employees Retirement Board to substitute an annuity which an employee has already commenced to purchase as provided by ORS 238.015(7) for all benefits otherwise provided for in ORS Chapter 238.

(2) The benefit adequacy of the substitute annuity shall be determined by the employer. In determining the adequacy of the benefits, the employer shall assure that the substitute annuity provides no less than 80 percent of the total actuarial present value of what the system would provide, under a service or disability retirement or a death benefit, and vesting for the same period of employment.

(3) A petition for substitution of an annuity by a public employer shall include the following:

(4) PERS staff shall have PERS' consulting actuary review the public employer's petition to assure:

(5) The Board may require the public employer to provide additional information necessary to confirm the employer's determination of the actuarial present value of benefits to be provided by the substituted annuity.

(6) The retirement annuity provided by the Federal Retirement System is considered as an acceptable annuity for an employee participating in that plan and desiring to be exempted from contributing to PERS, provided the federal annuity is adequate in amount.

(7) In all cases, the agreement for substitution of an annuity must be executed by the employee, the employer, and the (Board) system.

(8) In the event an employee elects to no longer substitute an annuity, the employee, if otherwise eligible, shall become an active member in the system effective with the first of the calendar month following receipt of the employee's written election.