Or. Admin. Code § 459-011-0050

Current through Register Vol. 63, No. 11, November 1, 2024

Section 459-011-0050 - Forfeiture and Restoration of Membership Rights

(1) A member who, pursuant to ORS 238.265, withdraws the amount credited to the member's account ceases to be a PERS Chapter 238 Program member and forfeits all membership rights accrued under ORS Chapter 238 before the effective date of withdrawal, including the right to claim credit for any employment before the effective date of withdrawal.

(2) Any such person may elect to restore membership rights and creditable service forfeited by the withdrawal of the member account as provided in ORS 238.105 or 238.115.

(3) Pursuant to ORS 238.105, any such person who reenters the service of a participating employer in a qualifying position within five years from the date of the last separation from employment in a qualifying position that preceded the member's withdrawal may, at any time during the one-year period immediately following the date of reemployment, repay to PERS, in a single lump sum payment, an amount equal to the amount withdrawn plus the earnings the amount withdrawn would have accumulated from the effective date of withdrawal to the date of repayment.

(a) Upon repayment as described in section (3) of this rule, the PERS Chapter 238 Program membership rights and creditable service forfeited by the withdrawal will be restored. The former member will reestablish membership in the PERS Chapter 238 Program from the date of reemployment. The withdrawn member account will be reestablished in the amount of the repayment.

(b) An employee who is terminated from employment, withdraws the member account under ORS 238.265, and is reinstated to employment in connection with a retroactive payment made under ORS 238.008(2) may restore membership rights and creditable service within the time period described in section (3) of this rule or within one year from the date the employee actually returns to employment, whichever is later. A retroactive payment must be allocated pursuant to ORS 238.008(3). So allocated, the payment must be used in the determination of employee and employer contributions and in the calculation of benefits.

(4) Pursuant to ORS 238.115, a person described in section (1) of this rule who reenters the service of a participating employer in a qualifying position and serves as an active member for 10 years after such reentry may obtain restoration of creditable service forfeited by the withdrawal if the member repays to PERS, in a single lump sum payment, an amount equal to the amount withdrawn plus 7.5% interest on the amount withdrawn compounded annually for each year or portion of a year after the effective date of withdrawal and before the effective date of retirement, for the period of creditable service restored.

(5) Restoration of creditable service forfeited by withdrawal of the member account under section (4) of this rule is not available to persons who already restored membership under section (3) of this rule.

(6) Beginning with January 1, 2018 effective retirement dates, a person whose membership is terminated under ORS 238.095(2) may not restore forfeited credit under ORS 238.115.

(7) Beginning with February 1, 2019 effective retirement dates, a member may not purchase retirement credit for the waiting period of employment completed prior to the effective date of withdrawal unless the membership rights and creditable service for the associated forfeited period of employment have been restored under ORS 238.105 or 238.115. If a member has multiple withdrawals, this requirement applies to each forfeited period of employment associated with each withdrawal.

(8) Notwithstanding the provisions of this rule, a member who withdraws pursuant to ORS 238.265 and receives an additional amount pursuant to section 2, chapter 276, Oregon Laws 2003, may not reestablish membership under this rule.

Or. Admin. Code § 459-011-0050

PER 8, f. 12-15-55; PERS 1-1996, f. & cert. ef. 3-26-96; Renumbered from 459-010-0060; PERS 2-2007, f. & cert. ef. 1-23-07; PERS 17-2007, f. & cert. ef. 11-23-07; PERS 2-2010, f. & cert. ef. 5-28-10; PERS 3-2017, f. & cert. ef. 5/26/2017; PERS 1-2019, amend filed 04/01/2019, effective 4/1/2019

Statutory/Other Authority: ORS 238.650

Statutes/Other Implemented: ORS 238.008, 238.095, 238.105, 238.115, 238.125, 238.265 & 2003 OL Ch. 276