| Recently Adopted PERS Administrative Rules |
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| Recently Adopted Rules |
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Creditable Service/Retroactive Salary Payments
The adopted rule modifications allow for creditable service in limited circumstances consistent with the current statutory structure. More specifically:
OAR 459-010-0014: This rule provides standards used to determine the accrual of creditable service in the PERS Chapter 238 Program. The rule was modified to reference the accrual of creditable service incident to a retroactive payment under OAR 459-010-0042.
OAR 459-010-0042: This rule outlines the administration of retroactive salary payments. The modifications to the rule clarify the definition of “retroactive payment” and provide standards for allocating such payments. The modifications further clarify that payments allocated to periods of non-membership will not trigger contributions or benefits. Also, a condition to receiving creditable service for periods to which retroactive payments are attributed is that the employee be an active member on the date of the retroactive payment. It also clarifies the time limit within which a member who receives a retroactive payment may restore rights forfeited by withdrawal during the period of absence. Lastly, the rule applies retroactively to July 31, 2003, the effective date of the statutory changes, to provide for consistency in the administration of retroactive payment and creditable service determinations.
Direct Rollovers (Temporary)
The Pension Protection Act of 2006 (PPA) allows rollover eligible distributions to be rolled to a Roth IRA as of January 1, 2008. PERS staff had understood this to be an option a plan could provide and we anticipated incorporating this provision into jClarety. However, the IRS recently indicated that plan sponsors must offer this type of rollover to plan participants.
Accordingly, these rule modifications conform three administrative rules to reflect this rollover option, retroactive to January 1, 2008. Administratively, rollovers to Roth IRAs are generally handled in the same manner as a rollover to any other eligible retirement plan but there are different tax reporting requirements, which staff will resolve before reporting for the 2008 calendar year is due in early 2009.
PERS Board Adoption Memo
Review of Staff Actions and Determinations Regarding Persons
459-001-0030: Modifies rule to address grievances by persons only.
459-001-0035: Clarifies the contested case hearing process.
459-001-0040: Deletes unnecessary language and clarifies Board and staff actions.
Review of Staff Actions and Determinations Regarding Public Employers
Staff developed this new rule that incorporates the provisions originally embedded in OAR 459-001-0030 to address employer disputes. These separate provisions provide employers the option they requested to have their dispute resolved through arbitration, mediation, or contested case at their election.
Employee Contributions for Prior Periods
The rule modifications impose an obligation on PERS to pay for earnings associated with any periods which occur after PERS has returned or failed to accept the contributions in question from the employer.
The rule modifications also designate that any earnings PERS pays would be charged against the earnings available for distribution in the year PERS finally posts those earnings to the member's account.
Selection of Benefit Option and Commencement of Allowance
The rule modifications clarify the administration of purchases of additional creditable service and retirement credit by members approved for disability retirement, and their beneficiaries.
Emergency Withdrawal Appeals Committee
Minor modification allows the Oregon Savings Growth Plan (OSGP) Emergency Withdrawal Appeals Committee to meet sooner than currently allowed and to meet by phone or in person.
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