Current through Register Vol. 63, No. 9, September 1, 2024
(1) A participating employer shall remit to
PERS in accordance with OAR 459-070-0110 the contributions required by ORS
238A.330. Unless otherwise
agreed to as provided for in section (2) or (3) of this rule, the employer
shall withhold and remit the required contributions on an after-tax basis as
defined in OAR 459-005-0001(2), which shall be known as "member paid after-tax
contributions (MPAT)".
(2) In
accordance with Internal Revenue Code (IRC) Section 414(h), and under provision
of ORS 238A.335(2)(b),
participating employers may voluntarily agree to assume and pay the employee
contribution on behalf of its employees, which shall be known as "employer paid
pre-tax contributions (EPPT)". The employer assumption and payment of the
employee contributions shall be subject to the following terms and conditions:
(a) The employer's employment agreement(s) to
assume and pay the contributions must be evidenced by a certified copy of the
employer's policy established by statute, charter, ordinance, administrative
rule, executive order, collective bargaining agreement, or other written
employment policy or agreement. The employer's employment policy(s) or
agreement(s) shall specify that:
(A) The
required PERS employee contribution is deemed to be picked up for purposes of
IRC Section 414(h)(2) and is assumed and paid for purposes of ORS
238A.335(2)(b);
(B) The employees do not have the option of
receiving the assumed amount directly;
(C) Employee compensation may not be reduced
and the employer shall provide the additional amounts necessary to make the
employee contributions; and
(D) The
employer's employment policy(s) or agreement(s) is not retroactive in its
application.
(b) The
employer's employment policy(s) or agreement(s) to assume and pay employee
contributions may not be construed to require an employer to open or
renegotiate a pre-existing collective bargaining agreement or change an
employment policy before its normal expiration date.
(c) The employer's employment policy(s) or
agreement(s) must be to assume and pay the full amount, and not a portion
thereof, of the affected employees' contributions required by ORS
238A.330.
(d) The employer's policy(s) or agreement(s)
may apply to all its employees or some of its employees. If it applies only to
some employees, it shall apply uniformly to employees of the public employer
who are similarly situated, such as, but not limited to:
(A) The chief executive officer or
administrative head of a public employer.
(B) Management personnel, as defined by the
public employer, not otherwise covered by a collective bargaining
agreement.
(C) Confidential
personnel, as defined by the public employer, not otherwise covered by a
collective bargaining agreement.
(D) Administrative personnel, as defined by
the public employer, not otherwise covered by a collective bargaining
agreement.
(E) Personnel covered by
a collective bargaining agreement.
(F) Other personnel, whether full time, part
time, temporary, or as a substitute, who are not covered by a collective
bargaining agreement.
(G) Personnel
hired on or after a date established or agreed upon by the employer.
(3) Under provision of
ORS 238A.335(2)(a),
participating employers may voluntarily agree to "pick-up" the employee
contributions withheld, and such picked-up contributions shall be known as
"member paid pre-tax contributions (MPPT)". The employer "pick-up" of the
employee contributions shall be subject to the following terms and conditions:
(a) The employer's agreement(s) to "pick-up"
the contributions must be evidenced by a certified copy of the employer's
policy established by statute, charter, ordinance, administrative rule,
executive order, collective bargaining agreement, or other written employment
policy or agreement. The employer's policy(s) or agreement(s) shall specify
that:
(A) The employees do not have the
option of receiving the picked-up amount directly;
(B) The employee compensation shall be
reduced by the amount necessary to make the employee contributions;
and
(C) The employer's policy(s) or
agreement(s) is not retroactive in its application.
(b) The employer's employment policy(s) or
agreement(s) to "pick-up" employee contributions withheld may not be construed
to require an employer to open or re-negotiate a pre-existing collective
bargaining agreement or change an employment policy before its normal
expiration date.
(c) The employer's
policy(s) or agreement(s) must be to "pick-up" the full amount, and not a
portion thereof, of the affected employees' contributions required by ORS
238A.330.
(d) The employer's employment policy(s) or
agreement(s) may apply to all its employees, or some of its employees. If it
applies to only some of its employees, it shall apply uniformly to employees of
the public employer who are similarly situated, such as, but not limited to:
(A) The chief executive officer or
administrative head of a public employer.
(B) Management personnel, as defined by the
public employer, not otherwise covered by a collective bargaining
agreement.
(C) Confidential
personnel, as defined by the public employer, not otherwise covered by a
collective bargaining agreement.
(D) Administrative personnel, as defined by
the public employer, not otherwise covered by a collective bargaining
agreement.
(E) Personnel covered by
a collective bargaining agreement.
(F) Other personnel, whether full time, part
time, temporary, or as a substitute, who are not covered by a collective
bargaining agreement.
(G) Personnel
hired on or after a date established or agreed upon by the employer.
(4) The notification of
the employer's written employment policy(s) or agreement(s) to enter into or to
revoke (1) the "pick-up", or (2) to assume and pay contributions on behalf of
employees, shall be submitted to PERS for review and approval, and shall become
effective on the date the notification is received by PERS. Additional
information related to the employer's policy or agreement shall be provided at
the request of staff and in the manner required by staff. If approved by PERS,
such policy and agreement may not be revoked by the employer except with prior
written notice to PERS. All costs to correct any errors caused by failure to
give required notice shall be borne by the employer.
(5) Notwithstanding sections (1) to (4) of
this rule, judge member contributions shall be made in accordance with ORS
238.515.
Stat. Auth.: ORS
238.650 &
238A.450
Stats. Implemented: ORS
238.515,
238A.330 &
238A.335
