Current through Register Vol. 63, No. 9, September 1, 2024
(1) Definitions.
The following definitions apply for the purposes of this rule:
(a) "Designated Beneficiary" means:
(A) A natural person designated as a
beneficiary by the member and who is not an eligible designated beneficiary;
or
(B) A trust that satisfies the
requirements in section (2) of this rule.
(b) "Eligible Designated Beneficiary" means a
natural person designated as a beneficiary by the member and who is determined
on the date of the member's death as:
(A) The
surviving spouse;
(B) A child of
the plan participant who has not reached majority;
(C) Disabled (within the meaning of section
IRC 72(m)(7));
(D) A chronically
ill individual within the meaning of section IRC 7702B(c)(2); or
(E) Any other individual who is not more than
10 years younger than the plan participant.
(c) "Required Beginning Date" means the same
as defined in OAR 459-005-0560(2)(a).
(2) A trust as beneficiary. If a trust is
designated as a beneficiary, the individual beneficiaries of the trust will be
treated as designated beneficiaries as defined in paragraph (1)(a)(B) if by
December 31 of the calendar year following the death of a person who designated
a trust as beneficiary, the trust satisfies the following conditions:
(a) The trust must be irrevocable, or become
irrevocable by its terms at the time of the person's death;
(b) The trust's beneficiaries must be natural
persons who are identifiable from the trust instrument; and
(c) One of the following must be provided to
PERS:
(A) A list of all beneficiaries of the
trust, including contingent beneficiaries, along with a description of the
portion to which they are entitled and any conditions on their entitlement, all
corrected certifications of trust amendments, and a copy of the trust
instrument if requested by PERS; or
(B) A copy of the trust instrument and copies
of any amendments after they are adopted.
(3) Distributions to Beneficiaries of Retired
Members under the IAP. If a retired member dies after the required beginning
date, the remaining account balance distributed to:
(a) An eligible designated beneficiary must
be at least as rapidly as under the distribution method being used at the
member's death; and
(b) A
designated beneficiary must be completed by December 31 of the calendar year
containing the tenth anniversary of the member's death.
(4) Distributions to designated beneficiaries
and eligible designated beneficiaries of Active and Inactive Members under the
IAP. If an active or inactive member dies before the required beginning date,
any death benefits shall be distributed by no later than December 31 of the
calendar year that contains the tenth anniversary of the member's
death.
(5) Distributions under the
IAP when there is no eligible designated beneficiary or designated beneficiary
are as follows:
(a) If a member dies before
the required beginning date with no eligible designated beneficiary or
designated beneficiary as defined in section (1) of this rule, the total
account balance must be distributed by December 31 of the calendar year
containing the fifth anniversary of the member's death.
(b) If the member dies after the required
beginning date with no eligible designated beneficiary or designated
beneficiary as defined in section (1) of this rule, the total account balance
must be distributed no longer than the member's life expectancy and the
distribution must begin no later than December 31 of the calendar year
immediately following the calendar year of the member's death.
Statutory/Other Authority: ORS
238A.410 & 238A.450
Statutes/Other Implemented: ORS
238A.005 -
238A.410
