Proposed administrative rules
Cessation of Disability Benefits Upon Reaching Normal Retirement Age
While both the Chapter 238 pension program (for Tier One and Tier Two members) and the OPSRP pension program (for OPSRP members) provide disability benefits, the structure of the benefits differ between the two pension programs. Under the Chapter 238 pension program, a member who is approved for disability receives a disability retirement that is calculated in the same manner as a service retirement. Like a service retirement, the member receives this disability retirement for life, assuming they continue to be disabled. Conversely, the disability benefit provided under the OPSRP pension program is a separate and distinct benefit from a service retirement. Instead of a formula benefit, it is calculated as 45% of the member’s last monthly salary and is paid until the member reaches normal retirement age, assuming the member continues to be disabled. At normal retirement age, the disability benefit ends and the member must apply for a service retirement.
The OPSRP disability administrative rules were put in place when the OPSRP pension program was established in 2004. Now that the program has matured and members are beginning to reach normal retirement age, staff have been working more closely with the rules and have identified that the current rule regarding cessation of OPSRP disability benefits contains outdated and redundant language. In response, the rule has been amended to reflect up-to-date application norms as well as clarifying language for ease of understanding.
Finally, the current rule language only operates as intended when a member’s birthday is other than the first of the month. A member whose birthday is the first of a month is eligible for service retirement on their birthday; whereas members whose birthdays are not the first of the month are not eligible for service retirement until the first of the month following their birthday. Both disability benefits and service retirement benefits are paid in arrears. Under the current language, a member who is receiving a disability benefit and has a birthday on the first of the month will receive their last disability benefit on the first of the following month, but if they retire for service on their birthday, they would also receive their first service retirement benefit on the first of the following month. To avoid this double payment scenario, the rule has been amended to clarify that, for members whose birthdays are the first of a month, the last disability benefit they are entitled to receive will be the disability benefit payable on their birthday.
Notice of Rulemaking
OAR 459-076-0045
Rulemaking Schedule Update 12/6/2024