Current through Register Vol. 63, No. 9, September 1, 2024
(1) Definitions.
For the purposes of this rule:
(a)
"Alternative retirement plan" (ARP) means a retirement plan offered by the
Oregon Health and Science University (OHSU) that is authorized under ORS
353.250,
or an ARP offered by Harney County Health District (HCHD) that is authorized
under ORS
237.750.
(b) "ARP provider" means OHSU or
HCHD.
(c) "Controlled group" means
a group of employers treated as a single employer for purposes of maintaining
qualified status under federal law.
(d) "Member's PERS account(s)" means any of
the following:
(A) The Tier 1 or Tier 2
member's regular account as defined in ORS
238.250,
(B) The Tier 1 or Tier 2 member's variable
account as defined in ORS
238.260,
(C) The member's Individual Account Program
(IAP) accounts under ORS
238A.350,
to the extent the member is vested in those accounts; and
(D) The member's Employee Pension Stability
Account under 238A.353.
(2) If an employee elects to participate in
an ARP:
(a) Unless otherwise agreed upon, the
effective date of an election to participate in an ARP shall be certified by
the ARP provider to PERS within 30 days of that effective date.
(b) If the employee is a vested member of
PERS who elects to transfer the balance of the member's PERS account(s) to the
ARP, the ARP provider shall forward a copy of the election to transfer together
with the participation certification required in subsection (a) of this
section.
(c) In the event an
eligible employee is disabled or deceased and an election to participate in an
ARP has not been signed by the employee, the employee shall be deemed to be an
active member of PERS, if all other membership conditions are met.
(3) In accordance with ORS
238A.100 and
238A.300:
(a) An employee who is serving a six-month
waiting period shall establish active membership in accordance with ORS
238A.100 and
238A.300 unless PERS receives notification of an election to participate in an ARP prior
to the completion of that six-month waiting period.
(b) Notwithstanding subsection (a) of this
section, if PERS receives a notification of an election to participate in an
ARP, active membership in PERS shall cease as of the effective date of the
election.
(4) A vested
PERS Chapter 238 Program or OPSRP member electing to participate in an ARP, who
is not concurrently an active member of PERS with another PERS participating
employer, may petition PERS to have the member's PERS account(s) transferred
directly to the ARP.
(a) A transfer of
eligible funds under this section shall be transferred directly to the ARP by
PERS and shall not be made available to the employee while employed by the
public employer, or the employer's controlled group, that offers the ARP in
which the employee has elected participation.
(b) A transfer of eligible funds from the
member's PERS account(s) as provided in subsection (a) of this section shall
not include any reserves of any PERS-participating employer.
(5) A PERS member electing to
participate in an ARP who has not separated from service in any position with
the public employer, or the employer's controlled group, that offers the ARP in
which the employee has elected participation, shall not be eligible to withdraw
any non-transferred member's PERS accounts, except as provided in section (4)
of this rule.
(6) A transfer of a
member's PERS account(s) to an ARP shall be in compliance with all applicable
Internal Revenue Code provisions and related Treasury regulation governing
qualified pension plans. The transfer may occur only if the ARP:
(a) Is a qualified plan under the Internal
Revenue Code;
(b) Is capable of
accepting funds transferred under the provisions of section (4) of this rule
without the transfer being treated as a taxable event under the Internal
Revenue Code; and
(c) Is willing to
accept those transfers.
(7) The date of distribution of a member's
regular account defined in ORS
238.250,
variable account defined in ORS
238.260,
and Employee Pension Stability Account under ORS
238A.353 to an ARP, as provided for in section (4) of this rule shall be the later of:
(a) The first of the calendar month following
the date of receipt by PERS of a copy of the election if such copy is received
by PERS on or before the fifteenth of a calendar month; or
(b) The first of the second calendar month
following the date of receipt by PERS of a copy of the election if such copy is
received on or after the 16th of a calendar month.
(8) The date of distribution of a member's
IAP account(s) under ORS
238A.350 to an ARP, as provided for in section (4) of this rule will be the date of the
actual distribution.
Statutory/Other Authority: ORS
238.650 & ORS
238A.450
Statutes/Other Implemented: ORS
237.750,
ORS
238.015, ORS
238A.100,
ORS
238A.300 & ORS
353.250
