Current through Register Vol. 63, No. 9, September 1, 2024
(1)
General Rule. If a member makes one or more after-tax contributions to PERS to
purchase permissive service credit, then all such contributions by the member
must satisfy one of the following limitations:
(a) The annual benefit limitation under OAR
459-005-0535, Annual Benefit Limitation, determined by treating the accrued
benefit derived from all of the member's contributions to purchase permissive
service credit as part of the member's annual benefit; or
(b) The annual addition limitation under OAR
459-005-0545, Annual Addition Limitation, determined by treating all of the
member's contributions to purchase permissive service credit annual
additions.
(2)
Definition of Permissive Service Credit. "Permissive service credit" means
service credit that satisfies the requirements in subsection (a) of this
section and is not excluded under subsection (b) of this section.
(a) Permissive service credit generally means
service credit that:
(A) Is recognized by PERS
as the retirement credit for purposes of calculating a member's
benefits;
(B) Has not previously
been credited to the member; and
(C) Is credited to the member only if the
member makes a voluntary additional contribution in an amount calculated under
the terms of the plan, which does not exceed the amount necessary to fund the
benefit attributable to the purchased service credit.
(b) Notwithstanding subsection (a) of this
section, "permissive service credit" does not include:
(A) Previously forfeited service that is
reinstated under ORS 238.105 or
238.115;
(B) Periods of military service that are
purchased under ORS 238.156; or
(C) Periods of nonqualified service that do
not satisfy the requirements in section (3) of this rule.
(3) Nonqualified Service.
Nonqualified service purchased by a member shall be treated as permissive
service credit only if the member purchases no more than five years of
nonqualified service, and the member has at least five years of active
membership before purchasing the nonqualified service. For this purpose,
"nonqualified service" means any service other than the following:
(a) Military service (other than military
service purchased under ORS
238.156);
(b) Service as an employee with one of the
following employers, provided that the employee does not receive a retirement
benefit from the same service under another plan:
(A) A governmental employer;
(B) A public, private, or sectarian school
that provides elementary or secondary education; or
(C) An association of governmental
employees.
(4) Retroactive Application. The provisions
of this rule shall be applied retroactively to January 1, 1998.
Stat. Auth.: ORS
238.630 & ORS
238.650
Stats. Implemented: ORS
238.005 - ORS
238.715
