Oregon Administrative Rules Chapter 459 - OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM
Chapter 459 of the Oregon Administrative Rules (OAR) serves as the detailed regulatory framework for the Oregon Public Employees Retirement System (PERS). It translates the broad statutes of the Oregon Revised Statutes (ORS) concerning PERS into actionable rules and procedures. This chapter is essential for understanding how PERS operates, how benefits are earned and distributed, and the responsibilities of both members and employers.
Here's a structured overview of the key areas covered:
1. Foundational and Administrative Operations:
Division 1: Procedural Rules: Sets forth the general processes PERS follows for its own administrative functions, including public records requests, how new rules are adopted or amended, and procedures for contested cases (hearings for disputes).
Division 5: Administration: Provides core definitions used throughout the chapter, outlines the general financial management of the PERS fund, establishes employer reporting requirements, and details overall compliance measures.
Division 7: Earnings and Interest Distribution: Explains how investment earnings are allocated to member accounts and how interest is applied within the retirement system.
2. Membership and Contributions:
Division 9: Public Employer: Defines the duties and responsibilities of public employers that participate in PERS, such as accurately reporting employee wages and making employer contributions.
Division 10: Membership: Crucially defines who is eligible to become a PERS member, including the specifics of the six-month waiting period for new employees, and addresses membership for various employee types like elected officials or community college staff. It also covers conditions for membership termination.
Division 11: Retirement Credit: Specifies how "creditable service" is earned and calculated, including rules for military service, transferring service between employers, and periods of leave.
3. Retirement and Other Benefits:
Division 13: Retirement Benefits: This is a cornerstone for members approaching retirement. It details eligibility requirements for service retirement, the different methods used to calculate retirement allowances (e.g., Tier One/Tier Two's Formula Plus Annuity or Money Match, and OPSRP's pension program), the various payment options available, cost-of-living adjustments (COLAs), and how benefit estimates are provided.
Division 14: Death and Survivor Benefits: Outlines the processes and rules for paying benefits to designated beneficiaries upon the death of an active or retired member.
Division 15: Disability Retirement Allowances: This division specifically addresses how members can apply for and receive disability retirement benefits. Key aspects include:
Eligibility Criteria: Defining what constitutes a disability for PERS purposes.
Application Process: Required medical documentation from the disabling condition's onset to the application date, and timelines for application.
Medical Evaluations: The role of independent medical examinations in the determination process.
Benefit Calculation: For OPSRP members, the disability benefit is typically 45% of the last full month's gross salary.
Benefit Duration: Disability benefits continue as long as the member meets PERS disability criteria, or until they reach normal retirement age.
Transition to Service Retirement: Importantly, disability benefits do not automatically convert to service retirement benefits upon reaching normal retirement age. Members must apply for service retirement, and there are rules about when the disability benefit ceases and when the service retirement benefit can begin.
Periodic Reviews: PERS conducts reviews to ensure the member continues to meet disability criteria.
Coordination with Workers' Compensation: While separate, PERS may consider Workers' Compensation determinations, particularly regarding duty-caused disabilities.
Division 16: Police Officers and Fire Fighters: Contains special provisions for P&F members, acknowledging their earlier retirement eligibility and specific job requirements.
Division 17: Reemployed Retired Members: Addresses the rules for retirees who return to work for a PERS-participating employer, including limits on hours worked and how reemployment can affect or suspend their retirement benefits.
4. Related Programs and Specific Situations:
Division 20: Old-Age and Survivors Insurance (Social Security): Rules related to the coordination of PERS benefits with federal Social Security for certain periods.
Division 30: Local Public Employer Retirement Plans for Police Officers and Fire Fighters: Rules for certain local retirement plans that operate parallel to PERS.
Division 35: Health Insurance Programs: Governs the health insurance programs available to PERS retirees, including eligibility for retirees, spouses, and dependents.
Division 40: Judge Member Program: Specific retirement provisions for judge members.
Division 45: Domestic Relations Orders: Procedures for handling court orders (like Qualified Domestic Relations Orders) that divide retirement benefits in divorce cases.
Division 50: Deferred Compensation: Rules for the Oregon Savings Growth Plan (OSGP), which is a separate deferred compensation program administered by PERS.
Divisions 70, 75, 76, 80: Oregon Public Service Retirement Plan (OPSRP): These divisions specifically detail the OPSRP, the retirement plan for employees hired after August 2003, covering its pension program, disability benefits for OPSRP members, and the Individual Account Program (IAP), which includes the Employee Pension Stability Account (EPSA).
In essence, OAR Chapter 459 is the central regulatory document for navigating the complexities of the Oregon Public Employees Retirement System for all stakeholders, from active members and retirees to public employers. For the most accurate and current information, consulting the official Oregon Administrative Rules directly is always recommended.
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