Or. Admin. R. 459-005-0370

Current through Register Vol. 63, No. 6, June 1, 2024

Section 459-005-0370 - Date of Participation and Transfer of Employee Funds to an Alternative Retirement Plan - OHSU

(1) Definitions. For the purposes of this rule:

(a) "Alternative retirement plan" (ARP) means a retirement plan offered by the Oregon Health and Science University (OHSU) that is authorized under ORS 353.250, or an ARP offered by Harney County Health District (HCHD) that is authorized under ORS 237.750.

(b) "ARP provider" means OHSU or HCHD.

(c) "Controlled group" means a group of employers treated as a single employer for purposes of maintaining qualified status under federal law.

(d) "Member's PERS account(s)" means any of the following:

(A) The Tier 1 or Tier 2 member's regular account as defined in ORS 238.250,

(B) The Tier 1 or Tier 2 member's variable account as defined in ORS 238.260,

(C) The member's Individual Account Program (IAP) accounts under ORS 238A.350, to the extent the member is vested in those accounts; and

(D) The member's Employee Pension Stability Account under 238A.353.

(2) If an employee elects to participate in an ARP:

(a) Unless otherwise agreed upon, the effective date of an election to participate in an ARP shall be certified by the ARP provider to PERS within 30 days of that effective date.

(b) If the employee is a vested member of PERS who elects to transfer the balance of the member's PERS account(s) to the ARP, the ARP provider shall forward a copy of the election to transfer together with the participation certification required in subsection (a) of this section.

(c) In the event an eligible employee is disabled or deceased and an election to participate in an ARP has not been signed by the employee, the employee shall be deemed to be an active member of PERS, if all other membership conditions are met.

(3) In accordance with ORS 238A.100 and 238A.300:

(a) An employee who is serving a six-month waiting period shall establish active membership in accordance with ORS 238A.100 and 238A.300 unless PERS receives notification of an election to participate in an ARP prior to the completion of that six-month waiting period.

(b) Notwithstanding subsection (a) of this section, if PERS receives a notification of an election to participate in an ARP, active membership in PERS shall cease as of the effective date of the election.

(4) A vested PERS Chapter 238 Program or OPSRP member electing to participate in an ARP, who is not concurrently an active member of PERS with another PERS participating employer, may petition PERS to have the member's PERS account(s) transferred directly to the ARP.

(a) A transfer of eligible funds under this section shall be transferred directly to the ARP by PERS and shall not be made available to the employee while employed by the public employer, or the employer's controlled group, that offers the ARP in which the employee has elected participation.

(b) A transfer of eligible funds from the member's PERS account(s) as provided in subsection (a) of this section shall not include any reserves of any PERS-participating employer.

(5) A PERS member electing to participate in an ARP who has not separated from service in any position with the public employer, or the employer's controlled group, that offers the ARP in which the employee has elected participation, shall not be eligible to withdraw any non-transferred member's PERS accounts, except as provided in section (4) of this rule.

(6) A transfer of a member's PERS account(s) to an ARP shall be in compliance with all applicable Internal Revenue Code provisions and related Treasury regulation governing qualified pension plans. The transfer may occur only if the ARP:

(a) Is a qualified plan under the Internal Revenue Code;

(b) Is capable of accepting funds transferred under the provisions of section (4) of this rule without the transfer being treated as a taxable event under the Internal Revenue Code; and

(c) Is willing to accept those transfers.

(7) The date of distribution of a member's regular account defined in ORS 238.250, variable account defined in ORS 238.260, and Employee Pension Stability Account under ORS 238A.353 to an ARP, as provided for in section (4) of this rule shall be the later of:

(a) The first of the calendar month following the date of receipt by PERS of a copy of the election if such copy is received by PERS on or before the fifteenth of a calendar month; or

(b) The first of the second calendar month following the date of receipt by PERS of a copy of the election if such copy is received on or after the 16th of a calendar month.

(8) The date of distribution of a member's IAP account(s) under ORS 238A.350 to an ARP, as provided for in section (4) of this rule will be the date of the actual distribution.

Or. Admin. R. 459-005-0370

PERS 5-1998, f. & cert. ef. 5-22-98; PERS 2-1999, f. & cert. ef. 5-13-99; PERS 4-2005. f. & cert. ef. 1-31-05; PERS 9-2020, amend filed 06/23/2020, effective 6/23/2020; PERS 6-2021, amend filed 07/23/2021, effective 7/23/2021

Statutory/Other Authority: ORS 238.650 & ORS 238A.450

Statutes/Other Implemented: ORS 237.750, ORS 238.015, ORS 238A.100, ORS 238A.300 & ORS 353.250