Current through Register Vol. 63, No. 3, March 1, 2024
(1) Definitions. For the purposes of this
rule:
(a) "Allocated Earnings" means the
actual investment earnings or losses of the Public Employees Retirement Fund
(PERF), apportioned based upon the proportionate size of the side account in
relation to the PERF and adjusted for administrative costs as described in ORS
238.229(3).
These earnings are exempt from funding requirements of the Contingency or
Capital Preservation Reserves.
(b)
"Amortized Amount" means the amount of a Side Account used to offset
contributions due from the employer.
(c) "Employer lump-sum payment" means:
(A) Any employer payment that is:
(i) Not regularly scheduled;
(ii) Not paid as a percentage of
salary;
(iii) Paid at the
employer's election instead of at the PERS Board's direction; and
(B) Any payment deposited into a
side account for the benefit of an employer.
(d) "UAL factor" means the monthly or annual
rate based upon allocated side account earnings.
(2) Subject to ORS
238.229(4), the
employer lump-sum payment shall first be applied to liabilities attributable to
creditable service by employees of the employer before the employer was grouped
with other public employers. Earnings on these amounts shall be credited based
on the following:
(a) For the month in which
the employer lump-sum payment is received, earnings shall be credited based on
the average annualized rate, prorated for the number of days from date of
receipt to the end of the month.
(b) For the remainder of the year, the
employer lump-sum payment shall receive earnings based on the difference
between the final Tier Two annual earnings rate and the Tier Two earnings rate
in effect as of the first of the month after receipt of the payment.
(c) In subsequent calendar years, earnings or
losses shall be credited to the employer lump-sum payment in accordance with
OAR 459-007-0005(14).
(3) Earnings on an employer lump-sum payment
held in a separate Side Account shall be credited to the Side Account based on
the following:
(a) For the month in which the
employer lump-sum payment is received, earnings shall be credited based on the
average annualized rate, prorated for the number of days from date of receipt
to the end of the month.
(b) For
the remainder of the year, the employer lump-sum payment shall receive earnings
based on the difference between the annual UAL factor and the UAL factor in
effect as of the first of the month after receipt of the payment.
(4)
(a) Amortized amounts to be applied to the
Employer Contribution Account shall receive earnings or losses based on the UAL
factor, effective as of the first of the calendar month following the date of
the application of the amortized amount.
(b) In subsequent calendar years, earnings
shall be credited to the remaining balance of the employer's side account
created when the lump-sum payment was received on an annual basis in accordance
with OAR 459-007-0005(4).
(5) The provisions of this rule are effective
on January 1, 2008.
Statutory/Other Authority: ORS
238.650
Statutes/Other Implemented: ORS
238.225 -
238.229
